T Rowe hikes Paytm's valuation by 35% to take enterprise value to $16 bn

| Photo: Bloomberg

US-based mutual fund T Rowe has raised Paytm's valuation by about 35 per cent to USD 255 per share, taking the total enterprise value of the Indian digital financial services firm to USD 16 billion, according to a regulatory filing.

T Rowe Price Communications and Technology Fund has valued its investment in One97 Communications (operates under brand name Paytm) at USD 82,16,610 for 32,222 shares, according to a SEC filing of the company.

This implies that the value of each Paytm share was USD 255 as on September 30, 2020.

The mutual fund company had earlier cut down the valuation of Paytm to USD 188 a share due to the impact of the COVID-19 pandemic.

When contacted, Paytm spokesperson said, "We see strong traction in our business across digital payments, consumer internet, merchant services and financial services. We are thrilled and motivated with all our shareholder's support that Paytm has always enjoyed. This has helped us in creating India's home-grown digital champion."

T Rowe Price had invested at least USD 150 million in Paytm in December 2019.

The Paytm spokesperson added that every investor who has ever invested in Paytm has held on to the shares for at least 5 years and has always sold it at a profit.

Paytm's financial year 2020 revenue has increased to Rs 3,629 crore, even as cash burn has reduced by over 60 per cent in the last 18 months.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel