Indian digital payment firm Paytm is looking to make history. Not only has it shown unprecedented growth in recent years, growing in value by over 25% since 2020, but if it is successful in reaching its goal of $2.5 billion in additional funding through its IPO, it will break the IPO record in its home country.
Like a great many digital payment service providers, Paytm credits its recent success to increased hygiene and distancing protocols in the age of COVID-19. The government of India has sought to discourage the use of cash in recent years, making digital payment platforms an integral component of doing business, a local grocery store owner reported to the Agence France-Presse news agency.
The rising popularity of paying online, particularly for smaller sums used for taxis and the like, has opened significant inroads for firms such as Paytm. Launched only a decade ago, Paytm has already grown to become the most valuable tech company in India, earning a $20 billion appraisal earlier this year. With financial analyst firm Motilal Oswal predicting annual mobile digital payments in India exceeding $3 trillion within the next five years, Paytm seems to have nowhere to go but up.