Paytm sets aside Rs 50 crore for cashbacks, to train merchants on digitisation

The proposed IPO is likely to have a combination of fresh issue of equity shares as well as an offer for sale of equity shares by existing shareholders of the company. | Representative Image

Ahead of its initial public offering, digital payments firm Paytm has set aside Rs 50 crore for cashbacks on transactions done by merchants and customers through its app.

Commemorating six years of Digital India, the company also plans to conduct on-ground activities in more than 200 districts to train merchants on digitisation and reward them for increased adoption of cashless payments.

"India has made significant strides in its Digital India mission, which empowers all with technological advancements. This mission is bound to contribute to the country’s growing economy. Paytm’s guaranteed cashback offer is to recognise the top merchants, who are at the heart of India’s growth and have made Digital India a success," Paytm Founder and CEO Vijay Shekhar Sharma said.

The merchants with the most number of transactions made through Paytm app before Diwali would also be offered free Soundbox and IoT devices besides cashbacks.

Launched on July 1, 2015 by Prime Minister Narendra Modi, the Digital India initiative is aimed at transforming India into a digitally empowered society and knowledge economy.

Addressing the nation on July 1, Modi said India's youth would take digitisation to newer heights and digital solutions created by India during the pandemic were being acknowledged globally.

Paytm has long accelerated financial inclusion through its multi-stack payment architecture. Paytm For Business app enables merchants to grow their business by offering them services like Business Khata, an online ledger dashboard to manage their finances and keep track of all transactions, merchant loans and also aids them with helpdesk services.

The company also offers Paytm postpaid to help partner merchants with Buy Now, Pay Later service apart from Wallet, UPI and other payment methods.

One97 Communications, which owns and operates Paytm, is planning to raise Rs 12,000 crore through a fresh issue of shares in the initial public offering.

Ahead of its IPO, Paytm has reported a revenue of Rs 3,186 crore for the financial year 2020-21 against Rs 3,540 crore in the previous year.