Indian fintech startup Paytm has tabled plans to raise up to $2.2bn in an initial public offering, as the pandemic has stoked India’s digital economy.
The Alibaba, Berkshire Hathaway, and SoftBank-backed firm said it will issue new shares worth $1.1bn and an offer for sale worth another $1.1bn.
The startup, which competes with Google Pay and PhonePe, rallied $577m in new funds to widen its payments services offering, using around $269m to enter into new initiatives and explore acquisition opportunities, it said.
Paytm’s IPO plans come amid a startup explosion in India, as it follows e-commerce and food delivery heavyweights Flipkart and Zomato.
Flipkart, which is controlled by Walmart, raised $3.6bn in fresh capital in its pre-IPO fundraiser, co-led by SoftBank’s Vision Fund II.
The fellow SoftBank-backed tech startup snagged a valuation of $37.6bn earlier this week, just shy of its $40bn target.
Local stock exchanges are undergoing a mini-boom, as India’s appetite for consumer tech stocks has swelled over the past 15 months.
Zomato, another of India’s biggest startups, has reaped the rewards of a pandemic-induced surge in online ordering.
The food delivery giant raised $526m ahead of its $1.3bn IPO just days ago, which pushed a near $8bn valuation for the company.
Foreign investors have been placing their bets on India’s growing startup market, particularly Japan’s SoftBank.
The US’ delivery giant FedEx has also given the country’s young tech companies a vote of confidence, injecting $100m into startup Delhivery today.
The investment comes less than two months after the delivery startup, which has been valued at $3bn, locked down $277m in funding ahead of its IPO planned for later this year.