According to sources, India's leading digital payment service provider Paytm will file a draft prospectus next week for $2.3 bln IPO.

Paytm will raise the money by selling new shares and a secondary offering, which is expected to value the company from $24 billion to $25 billion. Based on the $2.3 billion funding, Paytm's IPO would make it the third-largest IPO in India's history (in dollar terms), behind the state-run miner Coal India's IPO in 2010 and Reliance Power's IPO in 2008.

Paytm has the largest market share in Indian merchant payments, with its main competitors including Walmart's PhonePe, Google Pay, Amazon Pay, and Facebook's WhatsApp Pay. Data shows that Paytm has more than 20 million merchant partners and its users make 1.4 billion transactions per month.

Paytm has hired JP Morgan, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi, and HDFC Bank India as underwriters for the IPO.