Paytm employees become millionaires as company valuation touches $10 billion

Paytm confirms valuation has reached about $10bn, 200 employees become millionaires

Paytm, India's largest mobile wallet and one of the fastest growing payments bank has officially become worth $10 billion.

A company statement said over 200 former and existing Paytm employees across various business verticals including business, technology, product, administration, human resources, sales and finance have liquidated as much as Rs 500 crore worth of shares through the secondary sale till date.

ESOPs are employee stock ownership plan, a kind of employee benefit plan that encourages staffers to acquire stocks or ownership of the company.

Earlier in May, 2017, Paytm raised a whopping $1.4 billion through its Japanese investor Softbank which gave a significant rise to its then value of $7 billion. The company raised about United States dollars 2.5 million from Softbank in August a year ago in a mix of primary and secondary capital sale.

As per incoming reports, besides the secondary sale of shares, few new investors have also come on-board, which includes some unnamed family investors, and few "western investors".

Softbank-backed Paytm on Monday said its valuation has reached to about Dollars 10 billion following a secondary sale where some existing and former employees sold part of their shares to new investors including undisclosed family offices and a few western funds. "These employees, most of who have been with the company since inception, have benefitted", the company said.

As per the reports, around 200 Paytm employees liquidates their employees stock options for Rs 300 crores.

In December 2017, e-commerce firm Flipkart completed the $100 million (Rs 645 crore) repurchase of employee stock options that it had initiated in October. It also makes Paytm one of the biggest internet firms in the country following rival Flipkart which has a valuation of about Dollars 12 billion.

A secondary transaction is when a new investor buys shares from existing investors but the money does not go into the company's coffers. In the latest round, hedge fund, Discovery Capital bought shares from One97 Communications, Paytm's parent company.



Latest news

Argyle Capital Management Inc. Invests $207000 in Moody's Co. (MCO) Stock
The business services provider reported $1.52 EPS for the quarter, beating the Zacks' consensus estimate of $1.37 by $0.15. The Grt Capital Partners Llc holds 115,061 shares with $1.65 million value, down from 201,771 last quarter.

US to make streaming services pay more for music
Songwriters scored a victory over technology companies as a U.S. court ruled to give them a larger cut of the boom in music streaming .

Krispy Kreme fans choose flavor for new doughnut
Needless to say, we're always up for a new spin on the old favorite, especially when it comes from Krispy Kreme . But despite the competitive race, with nearly two million votes cast, the most popular choice was fairly clear.

Poland moves to ban references to Nazi-era 'Polish death camps'
Poland's Deputy Justice Minister Patryk Jaki, who authored the bill, said on Twitter it was not directed against Israel. The Polish government did not surrender to Nazi Germany and its government did not collaborate with the Nazis.

EPA ends clean air policy opposed by fossil fuel interests
But environmental groups say the move will lead to major increases in hazardous pollutants like mercury, arsenic and lead. Shelley Moore Capito (R-WV), who, along with Sen.

Other news