Paytm plans to raise $2 billion in funding round expected to be joined by investors like SoftBank, Alibaba, T Rowe Price, and others. The fundraising will take the company’s valuation to $16 billion. Moreover, the fintech giant looks forward to commencing cash generation from its user base post fundraise. Founder Vijay Shekhar Sharma revealed the company’s plans to go public on Monday at the India Mobile Congress.
According to a report, Vijay said that the firm would be looking to get listed on the stock exchanges after 2021 after it starts generating cash.
Paytm claims that it has achieved profitability at the contribution level while coming up against stiff competition from digital payment space with the introduction of UPI and Aadhar based payment systems. Deputy CFO Vikas Garg said that the firm’s contribution margin has grown to a profit of 12% from a loss of 30% of the revenue. He added that the company had recorded a GTV (Gross Transaction Value) of $100 billion, up from GTV of over $ 50 billion, while clocking 5.5 billion transactions in the financial year 2019.
Paytm has approximately 130 million monthly active users and over 450 million registered users, as of July’19. The payment platform planned on targeting 250 million new users, and onboard new merchants in Tier II and Tier III cities and towns. The company aims to gain a 2/3rd market share of the mobile payment market in India.