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US-based mutual fund T Rowe has raised Paytm’s valuation by about 35 per cent to $255 per share, taking the total enterprise value of the Indian digital financial services firm to $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 $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 $255 as on September 30, 2020.
The mutual fund company had earlier cut down the valuation of Paytm to $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.”
T Rowe Price had invested at least $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.
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