Benzinga | Jul 16, 2021 10:39AM EDT

Alibaba, SoftBank Backed Indian Online Payment Startup Paytm Eyes $2.2B IPO: TechCrunch

* Indian digital payments startup, Paytm, plans to raise $2.2 billion in an initial public offering, TechCrunch reports.

* Alibaba Group Holding Ltd (NYSE:BABA) and Ant Financial own 36% of Paytm. Berkshire Hathaway (NYSE: BRK-B) and SoftBank Group Corp (OTC:SFTBY) (OTC:SFTBF) held an 18% stake.

* The startup, which competes with PhonePe and Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google Pay, plans to offer a share sale worth $1.1 billion.

* Paytm may raise $268 million in a pre-IPO round.

* It plans to use the fresh capital of $577 million to broaden its payments services offering and about $269 million to enter into new initiatives and explore acquisition opportunities.

* Paytm was last valued at $16 billion.