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One 97 Communications Limited, the company that launched PayTM in 2009, has announced an IPO. The IPO opens on November 08, 2021, and closes on November 10, 2021. PayTM is one of India’s leading payment service platforms with a strong brand identity and a large customer base. You can visit the PayTM IPO page on Groww for details like the price band, lot size, etc. and apply for PayTM IPO.

Things to know before investing in PayTM IPO

Here are some important facts about One 97 Communications Limited that you should know before you decide to apply for PayTM IPO:

Path to IPO

  • 2000 – One 97 Communications Limited was incorporated 
  • 2009 – Launched PayTM to allow prepaid mobile phone users to top-up their mobile accounts. It also allowed people to shop online using credit cards or bank accounts.
  • 2012 – Launched payment gateway
  • 2013 – Received license from the RBI for introducing a semi-closed wallet
  • 2014 – Launched PayTM wallet app for Android and iOS
  • 2017 – Received license from the RBI to launch PayTM Payments Bank Limited to carry on payment bank business in India under the Banking Regulation Act, 1949
  • 2017 – Launched PayTM FASTag across India
  • 2019 – PayTM Money Limited received the certificate of registration from SEBI to act as a stockbroker 
  • 2020 – PayTM Insurance Broking Limited received the certificate of registration from IRDAI to act as a direct broker (life and general)
  • 2020 – Launched a mini-app store to support developers

Owners of PayTM

PayTM is owned by One 97 Communications Limited – a professionally managed company with no identifiable promoters. The founder of the company is Vijay Shekhar Sharma. The shareholding pattern of One 97 Communications Limited is as follows:

Make sure that you also go through the products and services offerings as an important aspect of the things to know before investing in PayTM IPO. The IPO opens on November 08, 2021.

Business Verticals

The products and services offered by One 97 Communication Limited can be divided into three broad categories:

  1. Payment Services – including a complete suite of products and services for merchants and customers enabling them to receive and make payments in a hassle-free manner.
  2. Commerce and Cloud Services – including lifestyle commerce services like ticketing, travel, food delivery, etc.
  3. Financial Services – a set of innovative financial solutions like insurance, lending, mobile banking, etc.

 Over the last three years, the revenue break-up across these three verticals is as follows:

Revenue from Operations (INR Crores) 2019 2020 2021
Payments & Financial Services 1695.5 1906.8 2109.2
Commerce & Cloud Services 1536.5 1118.8 693.2

Remember, the IPO opens on November 08, 2021

Details of the business verticals

Among the things to know before investing in PayTM IPO, gaining a detailed understanding of the products and services offered is important. Here is a quick look at the products and services offered by One 97 Communications Limited under various business verticals:

Payment Services

  • Bill Payments – PayTM played a crucial role in revolutionizing digital recharges and bill payment services in India. In 2010, the company started with mobile, DTH television, and internet data card recharges. Currently, it allows consumers to make bill payments across 26 services including electricity, cooking gas, water, etc.
  • Money Transfer – Users can initiate money transfers from the PayTM app using UPI and PayTM Wallet.
  • In-store Payments – Consumers can use the Scan & Pay feature on the PayTM app, as well as payment through credit/debit cards on PayTM, in-store POS machines, or contactless payments on Paytm Smart POS on merchant’s mobile.
  • Payment Instruments – Various payment instruments offered by PayTM are:
    • PayTM Wallet
    • PayTM Postpaid
    • PayTM UPI
    • PayTM FASTags
    • Fixed Deposits
    • PayTM Payments Bank Debit Card
    • PayTM Credit Card
  • Payment Gateway Services – a comprehensive platform for online merchants to accept payments through PayTM All-In-One Payment Gateway. It can be integrated into desktops, websites, or mobile apps in a store.
  • All-in-One QR Code – PayTM is the pioneer of QR Code-based payments for in-store merchants.
  • All-in-One POS Devices – PayTM has launched various POS devices pre-enabled with a range of features to empower merchants with technology-led solutions.
  • Soundbox – PayTM Soundbox is a battery-operated IoT-based device that offers voice-based confirmation of QR code payments to merchants.
  • PayTM Business Payments – This platform was launched to help merchants make payments for various business use cases. The company has also released an app for the same.

Commerce and Cloud Services

  • Travel Ticketing – Consumers can book a flight ticket, train ticket, or inter-city bus ticket from the PayTM app.
  • Entertainment Ticketing – Users can buy tickets for movies, sports, music, comedy, theatre, and other events on the PayTM App.
  • Advertising – Merchants can run advertising campaigns on PayTM’s platform.
  • Gaming – One 97 Communications holds a 55% stake in Paytm First Games Private Limited that offers mobile and online gaming.
  • PayTM First – A premium subscription-based rewards and loyalty program for consumers.
  • Android Mini-app platform for developers – where developers can list and digitally distribute mini-apps within its PayTM super-app without any charge.
  • Software and Cloud Services – These include small and medium enterprise cloud, enterprise solutions, and a PayTM AI Cloud to address the needs of digital and fintech platforms.

Financial Services

  • PayTM Payments Bank – A mobile-first bank with no minimum balance requirement for accounts and no digital transaction charges or maintenance charges. It offers a comprehensive suite of digital banking products that can be accessed via the PayTM app. The bank offers savings accounts, fixed deposits, corporate salary accounts, current accounts, and a range of banking-related services.
  • Lending – PayTM offers speed, innovation, and customization in lending products. It offers a basket of products under two segments:
    • Consumer lending – This includes PayTM Postpaid which is a buy-now-pay-later product, personal loans, and credit cards.
    • Merchant lending – This includes merchant cash advances and other credit facilities offered by the financial partners of PayTM.
  • Insurance & Attachment Products – The company offers various products across auto, life, and health insurance. It also provides attachment products like movie and travel ticket cancellation protections based on user engagement on its platform and as a part of the payments flow.
  • Wealth – Through its subsidiary, PayTM Money, the company offers wealth management services to its customers. The various investment options offered by the company include mutual funds, equity trading, and gold investing.
  • PayPay Corporation – Incorporated under the laws of Japan, this corporation offers payments and related financial services licensed or registered under the regulations of Japan.

Peer Comparison

According to the Red Herring Prospectus, there are no listed companies in India that engage in a business similar to that of PayTM. Accordingly, it is not possible to provide a just industry comparison in relation to it. Hence, make sure that you make a list of the things to know before investing in PayTM IPO carefully.

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Objectives of the IPO

The company plans to utilize the net proceeds from the IPO towards funding the following objects:

  • Growing and strengthening its PayTM ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services;
  • Investing in new business initiatives, acquisitions, and strategic partnerships; and
  • General corporate purposes.

How to apply for PayTM IPO

You need a demat account and bank account to apply for an IPO. If you eventually want to sell the shares in the secondary market, then you would need a trading account too. You can apply for the PayTM IPO by using one of these two methods of payment:

  1. ASBA – available via the net banking interface of your bank account. Almost all banks offer this facility.
  2. UPI – available with brokers who do not offer banking services.

How to apply for PayTM IPO on Groww

To invest in the PayTM IPO on Groww, follow these steps:

  • Log in to your Groww account and select PayTM IPO
  • Go through the details of the IPO like the price band, lot size,  etc. under the IPO banner
  • Place your bids
  • Approve the payment request on the UPI app
  • Done
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