Paytm, India’s most valuable startup, confirmed to its shareholders and employees on Monday that it plans to file for an IPO.
In a letter to shareholders and employees, Paytm said that it plans to raise money by issuing fresh equity in the IPO, and also sell existing shareholders’ shares at the event. The startup has offered its employees the option to sell their stakes in the firm.
This is the first time the Noida-headquartered firm has commented on its plans about the IPO. The startup said in the letter that it has received an in-principle approval from the board of directors to pursue the public market.
Paytm, which is backed by Alibaba and SoftBank, hasn’t shared when it plans to file for the IPO, but has sought shareholders’ response to their intention to sell stakes by the end of the month.
Two sources familiar with the matter told TechCrunch that Paytm plans to raise about $3 billion and is targeting a valuation of up to $30 billion in the IPO. Paytm declined to comment.
This isn’t the first time Paytm has planned to explore the public route. Exactly 10 years ago, long before Paytm established itself as the largest mobile wallet firm and expanded to several financial and commerce services, the startup had filed with the regulator with intentions to become public. The startup at the time cancelled the IPO plan and instead raised money from VCs to explore new avenues for growth.
This is a developing story. More to follow…