Paytm

Paytm’s expensive valuation, lack of clarity on the path to profitability, and cutthroat competition are believed to be the key reasons behind its weak market debut.

In the three-day IPO that concluded on November 10, Paytm was oversubscribed 1.89 times, receiving bids for a total of 91.4 million shares against the 48.3 million shares available.

Paytm plans to use the money raised from the IPO to onboard new consumers and merchants as well as for acquisitions and strategic partnerships.

Private equity and venture capital firms have poured in a record USD 49 billion into Indian companies across 840 deals during the first nine months of 2021.

Paytm’s IPO will be the largest-ever listing in the Indian capital market, surpassing Coal India’s INR 154.75 billion IPO in 2010.

With multiple super app contenders in India, the verdict on who will reach that level first is still open.

Paytm, India’s most valued startup at USD 16 billion, has become the latest high-profile company looking to go public.

Startups such as Urban Company, Paytm, and Byju’s have set up relief funds to help employees impacted by COVID-19.