Thread by @SmartSyncServ

“𝘚𝘰𝘮𝘦𝘵𝘪𝘮𝘦𝘴 𝘯𝘰𝘵 𝘨𝘦𝘵𝘵𝘪𝘯𝘨 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘸𝘢𝘯𝘵 𝘪𝘴 𝘢 𝘸𝘰𝘯𝘥𝘦𝘳𝘧𝘶𝘭 𝘴𝘵𝘳𝘰𝘬𝘦 𝘰𝘧 𝘭𝘶𝘤𝘬!”

Paytm knows this very well.

IPO Valn:

$25 Bn

INR1.85 Tn

𝐈𝐍𝐑 𝟏𝟖𝟓𝟎𝟎𝟎𝟎𝟎𝟎𝟎𝟎𝟎𝟎/-

A11-yr story.

Retweet to share with all.

Did you know?

In the year 2010, @vijayshekhar’s company One97 Communications, which owns Paytm, was looking to raise just 120 Cr. Valuing the whole company at around 500 Cr.

Fast forward 11 years.

A 370X jump in valuation.

That's the power of ownership of business and equity

Coincidentally, in 2010, India saw its biggest IPO till-date of Coal India

INR 15,200 Cr.

Paytm is all set to break that record this year with its
IPO

INR16,600 Cr.

Paytm

Not many of us know that Paytm is the abbreviation of “Pay Through Mobile”.

Yes. Now that you know it, it looks so obvious.

What was not so obvious was the fascinating journey of these 11 years.

Paytm started with:

~internet-content
~advertising
~commerce

All this changed in 2011 when Vijay first pitched the idea of entering the payment ecosystem to the board.

The board wasn't convinced, as he was betting the company’s money on a non-existent market.

“Some other entrepreneur would have sold the equity and started their own company. But I aspire to build a 100-year-old company. I think that men and boys are different because the boys flip and sell. Men run and build legacies,” Vijay said.

So he put 1% of his equity, which was about $2 million around 2011, on the table and said, “This is for all of you if I waste the money that we put on the site.” He adds, “There is no fun in doing what others ask you to do, the real fun is in doing what people say you can’t do.”

The first avatar of Paytm was born, going rapidly onto becoming the next big thing of the startup ecosystem in India.

And, since then it has never looked back.

Paytm has had its fair share of struggles as well.

However, this is what Vijay says about his and his company’s struggles

“To the winners, who won because they didn't give up.”

The financials, the losses, and the valuation.

These are all there in the DRHP.

Go read it to get all the info and data for your analysis.

But do not be rigid in your estimate of value.

We, at SSS, humbly admit that we can not estimate the actual value of Paytm.

The valuation of startups like Paytm will evolve over time. We are not sure whether today's valuation is right or wrong. However, we must recognize that Paytm does have value. What we do not know is how to measure it. Dismissing it bcoz it's in loss is very naive though.

This is not a recommendation to "Buy" or "Avoid" the Paytm IPO.

Please read the DRHP or take the help of a professional before jumping the gun.

If you liked the thread please retweet the first tweet.🙂🙏

End