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.

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