Paytm, an India-based digital payments and financial services firm, is planning to raise $2.2bn through its upcoming initial public offering (IPO).

The company filed a draft prospectus for the stock market debut last week with the Securities and Exchange Board of India.

It is expected to announce the IPO date once it is granted approval by the market regulator.

As part of the IPO, Paytm will raise $1.1bn through the issue of new shares and the rest through an offer sale.

Founder Vijay Shekhar Sharma, and investors Ant Financial and Alibaba, private equity major SAIF Partners, SoftBank Vision Fund, and Berkshire Hathaway will exit their holdings in the firm.

The firm also eyes up to $268m in a pre-IPO funding round.

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Previously, reports said that the firm is looking to raise $3bn in the IPO, targeting a valuation between $25bn and $30bn.

According to its filing with SEBI, the firm will use the fresh capital of $577m to further expand its payments services offering.

It also plans to utilise about $269m to propel expansion into new initiatives and explore acquisition opportunities.

Launched in 2009, Paytm enables users to make digital payments from their phones and top-up credit.

In addition to digital payments, Paytm offers banking, credit cards, financial services, wealth management, and digital wallets.

In 2019, the firm raised $1bn in a new funding round to expand its payments and financial services in rural parts of India.

Patym IPO is expected to be the biggest-ever in the country, surpassing Coal India’s INR150bn IPO that took place over a decade ago.