Indian fintech startup Paytm raises its IPO size to $2.44 billion after strong demand from investors

We covered Paytm back in May when the Indian digital payments leader announced its plan to go public by November with a target valuation of around $25 billion to $30 billion. Back then, Paytm was aiming to raise about $3 billion (218 billion rupees) in an initial public offering (IPO) but later scaled down to $2.2 billion (166 billion rupees). Five months later, we now have better clarity about its IPO size.

Today Paytm has boosted the size of its initial public offering to 183 billion rupees ($2.44 billion), as it plans to list in India around November with a valuation of around $25 billion to $30 billion. A source, who did not want to be named as the information was not public, told Reuters that Paytm increased the size of its IPO as it received increased investor demand. The company did not immediately respond to a Reuters request for comment.

Paytm joins one of the latest in the series of FinTech startups going public. Earlier this year, two payment fintechs made their debuts on both the NASDAQ and NYSE. Boston payments startup Flywire raised $250 million and  Paymentus stock also surged nearly 40% in its IPO debut.

Founded in 2010 by Akshay Khanna and Vijay Shekhar Sharma, Paytm is owned by one of India’s mobile-internet firms, One97 Communications. Its investors include SoftBank, SAIF Partners, Alibaba Group, and Ant Financial.

Paytm is a payment gateway that provides payment services to merchants and allows consumers to make seamless mobile payments from cards, bank accounts, and digital credit among others. The company maintains an open culture where everyone is a hands-on contributor and feels comfortable sharing ideas and opinions.

Paytm is also backed by Japan’s SoftBank Group (9984.T), Warren Buffett’s Berkshire Hathaway Inc (BRKa.N), and China’s Ant Financial. Paytm’s top competitors include Ant Financial, Flipkart, PayPal, FreeCharge, MobiKwik, and Razorpay.