Paytm Raises $1.1 Bn In India's Largest Anchor Round

SUMMARY

The anchor round has been oversubscribed 10 times by 74 investors, out of which 21 investors had bids greater than INR 100 Cr.

Global mutual funds - Blackrock, Vanguard and Fidelity; emerging markets dedicated investors - Standard Life Aberdeen, UBS, RWC participated in this round

The IPO will open for subscription on November 8th at INR 2,080-2,150 price band

IPO-bound Indian fintech giant Paytm has raised INR 8,235 Cr ($1.1 Bn) from anchor investors in India’s largest anchor round. The anchor round has been oversubscribed 10 times by 74 investors, out of which 21 investors had bids greater than INR 100 Cr.

Some of the key investors participating in this round include:

Blackrock invested INR 1,045 Cr
CPPIB invested INR 938 Cr
Birla MF invested INR 555 Cr
GIC invested INR 533 Cr

Global mutual funds – Blackrock, Vanguard and Fidelity; emerging markets dedicated investors – Standard Life Aberdeen, UBS, RWC; and global tech / fintech-focused funds like Sands Capital, Alkeon, Marshall Wace, Viking, Citadel participated in the anchor round.

Government of Singapore, CPPIB, ADIA, APG, City of New York, Texas Teachers Retirement, NPS Japan, University of Texas, NTUC Pension out of Singapore, the University of Cambridge amongst others have also invested in the IPO.

Paytm received the SEBI node for its INR 18,300 Cr IPO last week. Its offer includes a fresh issue of INR 8,300 Cr and an offer for sale of INR 10,000 Cr. The IPO will open for subscription on November 8th at INR 2,080-2,150 price band.

Founded in 2000, Paytm parent One Communications operate Paytm Payments Bank Limited, Paytm General Insurance Limited, Paytm Life Insurance Limited, Paytm Money Limited, Paytm E-Commerce Private Limited, Paytm Entertainment Limited among other smaller entities.

The company claims to have 337 Mn registered consumers and over 21.8 Mn registered merchants, as of June 30, 2021.

According to RHP filing, in Q1 FY22, Paytm recorded a 62% growth in its revenue from operations at INR 890.8 Cr. However, its losses widened by 34% to nearly INR 382 Cr. It recorded INR 689.4 Cr in revenue from payments and financial services in the April-June quarter of the current fiscal year.

During the first quarter of FY22, its net loss increased to INR 381.9 Cr, from INR 284.4 Cr during the corresponding quarter of FY21.

The fintech giant claims to have increased its GMV from 69,700 Cr in the three months ended June 30, 2020, to INR 1,46,900 Cr in the three months ended June 30, 2021.