The board of directors of payments company Paytm has given its in-principle approval for the company’s proposal for an IPO, sources told CNBC TV 18. The IPO which is expected around Diwali this year, as CNBC TV 18 had reported earlier, will give the company a valuation of over $25 billion, a big jump from its current $16 billion valuation.
The board, that met Friday evening, comprises founder and CEO Vijay Shekhar Sharma, Ravi Adusumalli — managing partner at Elevation Capital, Munish Varma – managing partner at SoftBank Investment Advisers, Pallavi Shroff — founder and managing partner of Shardul Amarchand Mangaldas law firm, Eric Jing — executive chairman of Ant Group, Todd Combs — investment manager at Berkshire Hathaway, Mark Schwartz – vice chairman of the Goldman Sachs Group, and Michael Yao – senior vice president of Alibaba Group.
CNBC TV 18 had reported on May 28 that the DRHP filing is likely to be completed by June-July.
The issuance will include secondary sale by Paytm’s investors on pro-rata basis. Paytm will likely split its stock as part of the IPO process.
Post board approval, Paytm investors will need to approve IPO-related aspects.
Paytm started as a bill-payments, mobile recharge platform in 2010, and launched the mobile wallets business in 2014. The company eventually went on to launch a payments bank, an investment platform, and even ventured into online gaming.
According to investment research firm Bernstein, Paytm has a 350 Mn+ installed base, 50 million active user base, and a 20 Mn+ merchant base. Paytm Payments Bank has ~ 60 Mn accounts.
Bernstein expects Paytm’s revenue base to double by FY23 to ~$ 1 Bn, with non-payments revenue contributing ~33%, led by credit tech.