By Alicia Maher
India’s financial regulators have approved Paytm IPO launch on the country’s capital market. This listing (when it happens) will be the most significant public share sale ever in the country’s history. The top news agency, Reuters, revealed that Paytm plans to launch by the end of October. Paytm’s IPO is supported by Vision fund and other leading venture capitalists.
The firm expects to not be in the red again within the next one and half years following a $221 debt for the march 2021 fiscal year-end. Paytm looks to tread the road previously worked by Zomato and other similar FinTech firms that have successfully been launched on the country’s exchange market.
Following the listing of Paytm as one of Uber’s payment options, the FinTech company’s popularity and profits surged dramatically. Furthermore, the firm expanded its business into other service-related offerings.
Increasing Interest In India’s Fintech Space
In the second quarter of last year, it was widely reported that investors’ total investment in India’s FinTech space amounted to almost $650m. India’s FinTech industry experienced a 65% rise in investments within this space of one year between June 2019 and June 2020. One of the country’s top FinTech startups, Bharatpur, realized almost $109m in a Series D fundraising event.
Despite a pandemic-affected economy and significant interest in a cashless society, India’s FinTech space continues to grow in leaps and bounds. According to a recently released report by the RBSA, “as FinTech opens up opportunities for more comfortable and varied options for consumers, the industry continues to mature but not to the point of saturation. Hence, it is likely that in the future, these FinTech firms will utilize data analytics to provide their customers with more personalized offers. These advancements will result in tremendous growth in the FinTech market and the evolution of the broader financial market space in the country. “
Ripple’s Principle Motivates Australia’s Regulatory Report
Australia’s senate committee on FinTech development has revealed that Ripple’s tech agnostic principles inspired their regulatory recommendations. This much was revealed by Susan Friedman, one of Ripple’s top execs, who joyfully shared the good news. The committee was further inspired by FinTech’s principles-based framework and risk-based approach. The latter creates an open investment system without adversely affecting the ecosystem.
This approach ensures that regulators do not need to distinguish between a blockchain or mainstream techs even if the need arises. One other Ripple principle approach that delighted the committee was that the company didn’t classify digital assets based on technology but the specific economic purpose and function.
One of the blockchain company’s top legal counsel, Stuart Alderoty, opined that Australia is now one of the few countries attempting to use the proper method to solve crypto regulatory issues. Australian financial regulators opted to look into the crypto space following reports from the tax office that over 600,000 taxpayers have crypto investments. Ripple continues to run its overseas operations with ease despite its struggles with the US financial watchdog.