ET, which sourced the report independently, has reviewed a copy. The audited financial figures have not yet been filed with the Registrar of Companies (RoC).
The company, backed by China’s Alibaba and Japan’s SoftBank, aims to go public by November and is expected to file its Draft Red Herring Prospectus (DRHP) with markets regulator, the Securities and Exchange Board of India (Sebi), by next month.
Founded by Vijay Shekhar Sharma, Paytm is currently the most valued Indian startup, at $16 billion.
The company had reported flat consolidated revenue in FY20 for a second consecutive year, as it cut spending on discounts, cashbacks and promotions, which helped reduce losses by 30% but impacted revenue growth.
Marketing and promotional spends were down 61% to Rs 532 crore during FY21 from Rs 1,397 crore a year ago. Total expenses fell to nearly Rs 4,783 crore, from Rs 6,138 crore in FY20.
Paytm has been steadily focusing on reducing losses, though the Covid-19 pandemic-led slowdown in the consumer economy has hurt growth.
A spokesperson for Paytm said “despite a significant disruption” in its merchant business due to the virus outbreak in the first half of FY21, the impact on revenue has been minimal “due to strong recovery in the second half of the year.”
In its annual report, the company said it had incorporated the pandemic’s impact in its latest financials but the “impact assessment of Covid-19 is a continuing process given the uncertainties associated with its nature and duration.”
Our detailed analysis of Paytm’s IPO plan in our weekend newsletter ETtech Unwrapped.
“Covid-19 continues to spread across the globe and India. This has an impact on all local and global economic activities. Government…has taken a series of measures to contain the spread of virus and limit economic impact on corporates and individuals,” Paytm said.
Expenses related to ticketing, contests, and Fastag fell in the reporting period to Rs 172.54 crore, from Rs 248.21 crore in FY20. Legal fees and professional expenses rose to Rs 198.38 crore from Rs 139.53 crore in FY20.
ET reported last week that Paytm’s board had
cleared its proposal to go in for an Initial Public Offering by November.
News wire Bloomberg said in a report that Paytm was aiming at a valuation of $25-$30 billion. However, it is unclear whether it would be able to fetch such a significant mark-up from its $16 billion valuation currently.
SoftBank Vision Fund chief executive Rajeev Misra told ET last week that the fund has not had discussions with founder Sharma on Paytm’s IPO valuation, and that it will not exit the company in the near-term.