Paytm board will be meeting today to take a final call on the initial public offering (IPO) plan. This could be one of the largest issuances with the intent to raise $3 billion in the listing process. Gautam Chhugani, Director- Indian Financials and Fintech, Bernstein; has written a note on it named ‘Pre-IPO Primer’.

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While discussing his report, he said, “Paytm is a lot more than a wallet company. It is a very holistic payment company.”

“The stage at which Indian payments landscape today is one needs to focus on monetisation and Paytm’s strategy to focus on merchant and to focus on a more holistic ecosystem is going towards greater monetisation,” he shared.

When asked why one should bet on Paytm, Chhugani replied, “Indian financial services and the credit landscape has been more about large banks focusing on more affluent users - even on the merchant side, the focus has been on large-sized and mid-sized corporates. There is a huge opportunity in small businesses, in providing small-ticket lending to a broad market of users and not just the affluent users that can get a loan from the banks.”

“This is more a market expansion bet than as much as the view between banks and Paytm or that Paytm is going to disrupt banks or anything of that sort. It is more about how Paytm can expand the market into a far wider segment of users both on the merchant side as well as the user side,” he added.

For the full interview, watch the accompanying video

(Edited by : Bivekananda Biswas)

First Published:May 28, 2021 5:27 PM IST