F&B

Starbucks India launches subscription plan

Barista Coffee races towards 500 cafes

Starbucks Rewards Day is here

Keventers launches ₹99 range of beverages

Tim Hortons continues India expansion

UAE’s Kulfilicious opens 2nd outlet in India

E-Commerce

FirstCry opens 8,000 sft store – largest in India
Babycare

FirstCry opens 8,000 sft store – largest in India

April 1, 2023
Flipkart spent Rs. 15,020 Cr to earn Rs. 10,476 Cr in revenues
E-Commerce

Flipkart spent Rs. 15,020 Cr to earn Rs. 10,476 Cr in revenues

December 15, 2022
Big Basket spent Rs. 1.10 to earn Re. 1 in FY 21-22; Losses climb 4x
E-Commerce

Big Basket spent Rs. 1.10 to earn Re. 1 in FY 21-22; Losses climb 4x

October 11, 2022
Vinod launches 100% Virgin Aluminium Cookware
Indian Ecomm

Vinod launches 100% Virgin Aluminium Cookware

January 21, 2022
No Result
View All Result
Thursday, September 28, 2023
  • Login
Retail Updates
  • FMCG
    • FMCG Food
      • Indian FMCG – Food
      • Regional FMCG – Food
      • StartUps FMCG – Food
      • International FMCG – Food
    • FMCG Non-Food
      • Indian FMCG Non-Food
      • Regional FMCG Non-Food
      • Startups FMCG Non-Food
      • International FMCG Non-Food
  • Fashion
    • Luxury
    • Womens’
    • Menswear
    • Innerwear
    • Accessories
      • Cosmetics
      • Eyewear
      • Footwear
      • Leather
      • Personal Care
      • Watches
      • Wearables
  • F&B
    • Coffee
    • Cloud Kitchens
    • QSR
    • Traditional
    • Tech Delivery
  • E-Commerce
    • Amazon
    • Indian Ecomm
    • Services
  • Malls
    • Mall Chains
    • Standalone Malls
  • International
    • USA
    • Singapore
    • China
    • Middle East
    • SE Asia
    • Europe
    • Oz & Nz
    • SouthAm
  • Entertainment
    • Cinemas
    • Multiplex
    • OTT Platforms
    • Theme Parks
    • Others
  • Retail Tech
    • Digital
    • Retail AI
    • PoS S/w
    • Payments
    • Credit Cards
    • Crypto
    • Tech Delivery
  • Cities
  • Corporates
    • People
      • Movements
      • Obituary
    • Industry Info
    • Global
      • Amazon
      • Apple
      • Starbucks
      • Shell
      • Walmart
    • Indian
      • Aditya Birla
      • Arvind Fashions
      • Britannia
      • Colgate
      • Future Group
      • Dabur
      • HUL
      • ITC
      • Marico
      • Nestle
      • Patanjali
      • Reliance
      • Reckitt
      • Shoppers Stop
      • Tata Group
    • Listed Cos.
  • Specialty Retail
    • Airports
      • AAI Airports
      • PPP Airports
      • International Airports
    • Travel Retail
      • Metro Rail
      • Railways
      • Highways
    • Auto Retail
      • 2W
      • 4W
      • EVs
      • Fuel Retail
    • Beauty Services
    • Babycare
    • Liquor
    • CDIT
    • Grocery Retail
    • Pets & more
    • Home Improvement
    • Kidswear
    • Books
    • Athleisure
    • Pets & more
    • Leather
  • Opinions
    • Blogs
    • Videos
    • Interviews
    • Lockdown Impact
    • Editor’s Note
Retail Updates
No Result
View All Result

Diwali IPO for PayTM in the cards

by Editor
June 4, 2021
in Digital, E-Commerce, Latest News, Retail Tech, Services
Reading Time: 3 mins read
0

With an estimated valuation of USD 22 – 25 Billion, PayTM may go for an IPO in the Indian Stock Markets by Nov. 2021, sources said. Alongside, existing Investors may also dilute their shares pro-rata, that is in proportion to their shareholding, thereby unlocking huge RoI on their investments.

China’s Alibaba Group, Japan’s Softbank and marquee investor SAIF Partners (now renamed Elevation Partners) are the key investors in PayTM. Along with JP Morgan and Morgan Stanley, the company is planning to bring on board Axis Capital, SBI Capital and ICICI Securities to accelerate its compliance timelines so as to file the Red Herring Prospectus by July 2021.

YOU MAY ALSO LIKE

PayTM offers cashback on all transactions

Gritzo launches new campaign with Lara Dutta Bhupati

PayTM has raised USD 2.8 Billion till date and is planning to dilute about 10% of shares on the block.

PayTM started off as a payment App and grew to stardom after the infamous 2017 Demonitisation drive by the Union Government of India when Rs. 2,000 and Rs. 500 denomination currency notes were abruptly stopped from circulation and exchange since 7 Nov. 2017 onwards. Over time, “PayTM Karo” became a national slogan and the company is credited to have changed the way millions of people across the country make and receive payments for day to-day transactions, from buying grocery to filling fuel, apparel, food, e-commerce and much more.

The high decibel advertising a day after DeMo was announced across national newspapers created a furore and over time, other payment platforms such as PhonePe (owned by Flipkart) and Google Pay have risen in volumes and users. Apple Pay, the payment gateway within the Apple ecosystem is expected to be launched soon, so Apple users can control and make payments in one click.

Millions of Retailers have benefitted from digital payments, while at the same time, this has added up the tax burden for a few, who were earlier skipping the receipts in official records. Now, with tighter control on GST filing coupled with Aadhar Number integration with PAN (personal and business), most payments are getting accounted for, which is leading the country in a better direction.

Between FY 2017 & FY 2018, the revenue for PayTM are three times from Rs. 813 Cr. to Rs. 3,234 Cr. while its Expenses more than doubled from Rs. 2,047 Cr. to Rs. 4,718 Cr. during the same period. For FY 19-20, the Revenue for the company was Rs. 3,350 Cr. while its expenses were Rs. 5,861 Cr.

Now, one can imagine why would a company with Rs. 5,000 Crores expenses and Rs. 2,833 Cr losses for FY 2019-20 would be valued 8-10 times it’s turnover. The valuation of startups has always been dicey and is best known to experts who arrive at a sum based on a number of calculations, important among them being “Cost of replacement” theory established in the late 80s by Stock Market Bull Harshad Mehta. For the record, PayTM had 200 million users in 2017-18 which has now grown to 350 for the immediate past financial year.

Going by its revenue figures, each user is said to have spent Rs. 100 for the year. The number of merchants has grown from 7 million three years ago to 10 million most recently.

Given the scenario, its is estimated that PayTM’s valuation (cost of replacement) is justified. However, time will tell how this would span out.

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to print (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Click to email a link to a friend (Opens in new window)

Like this:

Like Loading...

Related

Tags: Credit Cardsdigital paymentsflipkartIPOkiranasmerchantsonline paymentspaytmphonepe
ShareTweet

Related Posts

PayTM offers cashback on all transactions
Payments

PayTM offers cashback on all transactions

September 18, 2023
Gritzo launches new campaign with Lara Dutta Bhupati
Latest News

Gritzo launches new campaign with Lara Dutta Bhupati

September 18, 2023
Hidesign launches writing instruments
Latest News

Hidesign launches writing instruments

September 22, 2023
PVR-Kotak Debit Card offers 20* free movie tickets yearly
Entertainment

PVR-Kotak Debit Card offers 20* free movie tickets yearly

September 11, 2023
boAt wearables celebrates manufacturing of 2.5 Cr products
Latest News

boAt wearables celebrates manufacturing of 2.5 Cr products

August 27, 2023

Specialty Retail

Hidesign launches writing instruments
Latest News

Hidesign launches writing instruments

by Editor
September 22, 2023
0

Internationally acclaimed and homegrown leather goods brand Hidesign has extended its accessories range to include writing instruments, such as fountain...

Read more
The Love Co. launches kids care products

The Love Co. launches kids care products

September 15, 2023
India to have Asia’s largest Pet-Food facility

India to have Asia’s largest Pet-Food facility

September 14, 2023

FMCG & Grocery

Bisleri x Jawan limited edition packs now available

Nourish Mantra launches new range of Toner & Serum

Baskin Robbins is the Official Dessert Partner for Barbie The Movie

Entertainment

Bisleri x Jawan limited edition packs now available
Entertainment

Bisleri x Jawan limited edition packs now available

by Editor
September 11, 2023
0

Bisleri International, India's leading packaged drinking water brand has tied up with Shah Rukh Khan's upcoming "Jawan", the first pan-India...

Read more
PVR-Kotak Debit Card offers 20* free movie tickets yearly

PVR-Kotak Debit Card offers 20* free movie tickets yearly

September 11, 2023
NY Cinemas opens in Guwahati

F&B to boost cinema theatres’ profitability

August 2, 2023

Search

No Result
View All Result

Who We are…

Retail Updates strives it’s best to curate the latest in the world of Retailing from across the world and offers insights and analyses.

  • FMCG
    • FMCG Food
      • Indian FMCG – Food
      • Regional FMCG – Food
      • StartUps FMCG – Food
      • International FMCG – Food
    • FMCG Non-Food
      • Indian FMCG Non-Food
      • Regional FMCG Non-Food
      • Startups FMCG Non-Food
      • International FMCG Non-Food
  • Fashion
    • Luxury
    • Womens’
    • Menswear
    • Innerwear
    • Accessories
      • Cosmetics
      • Eyewear
      • Footwear
      • Leather
      • Personal Care
      • Watches
      • Wearables
  • F&B
    • Coffee
    • Cloud Kitchens
    • QSR
    • Traditional
    • Tech Delivery
  • E-Commerce
    • Amazon
    • Indian Ecomm
    • Services
  • Malls
    • Mall Chains
    • Standalone Malls
  • International
    • USA
    • Singapore
    • China
    • Middle East
    • SE Asia
    • Europe
    • Oz & Nz
    • SouthAm
  • Entertainment
    • Cinemas
    • Multiplex
    • OTT Platforms
    • Theme Parks
    • Others
  • Retail Tech
    • Digital
    • Retail AI
    • PoS S/w
    • Payments
    • Credit Cards
    • Crypto
    • Tech Delivery
  • Cities
  • Corporates
    • People
      • Movements
      • Obituary
    • Industry Info
    • Global
      • Amazon
      • Apple
      • Starbucks
      • Shell
      • Walmart
    • Indian
      • Aditya Birla
      • Arvind Fashions
      • Britannia
      • Colgate
      • Future Group
      • Dabur
      • HUL
      • ITC
      • Marico
      • Nestle
      • Patanjali
      • Reliance
      • Reckitt
      • Shoppers Stop
      • Tata Group
    • Listed Cos.
  • Specialty Retail
    • Airports
      • AAI Airports
      • PPP Airports
      • International Airports
    • Travel Retail
      • Metro Rail
      • Railways
      • Highways
    • Auto Retail
      • 2W
      • 4W
      • EVs
      • Fuel Retail
    • Beauty Services
    • Babycare
    • Liquor
    • CDIT
    • Grocery Retail
    • Pets & more
    • Home Improvement
    • Kidswear
    • Books
    • Athleisure
    • Pets & more
    • Leather
  • Opinions
    • Blogs
    • Videos
    • Interviews
    • Lockdown Impact
    • Editor’s Note

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
 

Loading Comments...
 

    %d bloggers like this: