While the stock has trended lower for most part since its listing, March has been particularly difficult for the payments company.Įarlier this month, India’s central bank barred the company’s banking arm from signing up new customers. India’s tech IPO party - which started with Zomato last year - came to a screeching halt with Paytm’s debut. “Other investors who got on the bus after the IPO may be repenting now,” he added. “But those retail investors were looking for immediate listing day gains.” “Last year, there was an IPO frenzy and people were willing to pay the aggressive valuations these companies demanded,” said Piyush Nagda, head of investment products at Mumbai-based brokerage Prabhudas Lilladher. The steep plunge in those stocks has also likely thwarted IPO plans for other Indian companies - at least for the foreseeable future. Instead, it has turned into a big, fat reality check for tech companies, with retail investors questioning their huge valuations. While technology stocks are suffering globally, the plunge in India is particularly painful for investors and companies who were hoping for a coming-of-age period for one of Asia’s fastest-growing startup ecosystems. Online insurance marketplace Policybazaar has fallen more than 40% since it began trading in November. While Paytm has been a flop since day one, other Indian tech giants whose debuts were red-hot in comparison have also plunged in recent months.įood delivery company Zomato - the first Indian unicorn to go public - is down over 36% from its first day of trading last July.Į-commerce site Nykaa, whose debut late last year made its founder India’s wealthiest self-made female billionaire, is also trading 36% below the highs it saw on listing day. It is not the only Indian internet company that has soured on the stock market this year. The firm’s stock is now trading close to 560 rupees ($8), more than 70% below its offer price, according to data from Refinitiv. Investors, however, appear to disagree - Paytm’s stock crashed 27% on its first day of trading.įour months later, things have only gotten worse. In Q2, the startup’s losses surged to $50.9 million, Paytm said, citing additional marketing and promotional campaigns in the run up to the IPO.Paytm founder Vijay Shekhar Sharma breaks down while giving a speech during his company's IPO listing ceremony at the Bombay Stock Exchange in Mumbai on November 18, 2021. In the new filing, Paytm disclosed that it clocked $118 million in revenue from its operations in the quarter that ended in June this year, up 62% from the prior quarter. The startup, led by Vijay Shekhar Sharma, describes itself as having “created a payments-led super app, through which we offer our consumers innovative and intuitive digital products and services.” The startup says it has amassed over 330 million users across its services, more than a third of whom transact annually. It has since expanded to a wide range of services such as payment gateway, e-commerce marketplace, movie and travel ticket booking, as well as insurance and digital gold. Paytm, which is backed by Alibaba, Berkshire Hathaway and SoftBank among others, launched in 2009 to help users easily make digital payments from their phones and top up credit. The startup is moving to price its share in the range of 2,080 to 2,150 Indian rupees ($27.70 to $28.60), a person familiar with the matter said, adding that the subscription will be available from November 8 to 10, and the trading will begin on November 18 - or thereabout.Ī successful listing would make Paytm the biggest IPO in India, surpassing a record $2.07 billion initial public offering by government-owned coal mining and refining firm Coal India 11 years ago. In an updated filing this week, Paytm said it is seeking to raise $2.4 billion. The startup, which has raised more than $3 billion over the past decade and was last valued at $16 billion, said at the time that it was looking to raise about $2.2 billion. Paytm filed the paperwork for an IPO with the local regulator in July this year. Paytm, one of India’s most valuable startups, is seeking to raise as much as $2.4 billion in what is shaping up to be the biggest initial public offering in the country at a valuation of $20 billion, according to two people familiar with the matter and internal documents seen by TechCrunch.
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