India’s potential plan to induce businesses to perform a secondary record on an Indian stock exchange should they opt to list on an overseas bourse would unfairly penalise Indian companies, according to a senior executive at fin-tech company Paytm.
“Companies should be allowed to list wherever they want. I think that would be good not just for the companies, but for the digital ecosystem” Madhur Deora, a president of SoftBank-backed Paytm, told journalists in an interview on Tuesday.
Deora’s comments come as India works on forging rules that would open the doors for Indian start-ups to record overseas and access deeper funding pools.
Earlier this month however, we reported that New Delhi is also thinking about mandating a Indian secondary record for any Indian firm that opts to list abroad, a move shareholders fear will damage valuations.
“I would have preferred for that (decision) to be left to companies and their boards,” explained Deora.
“This (idea) would complicate our lives.”
Companies like Google that vie against Paytm from the electronic payments area don’t have any such obligation, noted Deora.
“The fact that we are Indian and we are domiciled in India – that should not create additional obligation for us,” he explained.
Paytm, which also counts Chinese tech giant Alibaba and Berkshire Hathaway among its backers, expects to become profitable within 12 to 18 months,” stated Deora, a former investment banker who joined the start-up at 2016.
One of India’s most valuable start-ups, Paytm started a decade ago as a platform for cellular recharges but it now sells items ranging from flight tickets to mutual funds. It competes with Google Pay, Walmart’s PhonePe and Amazon Pay in India’s digital payments marketplace, which will be set to more than double in value to $135 billion by 2023 by 2019.
“We want to go public only as a profitable company,” Deora said without establishing a deadline for a record.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Sankalp Phartiyal and Nupur Anand. Editing by Euan Rocha and Stephen Coates.
To stay on top of the latest developments across the platform economy and gain access to our problem-solving tools and comprehensive content sets, you can become a member for just $7 per month.