Around 200 employees of Paytm liquidated their ESOPs – which are benefits aside from salary offered to employees in the form of shares – for Rs 300 crore.
Reaching yet another milestone in the e-commerce market, mobile payment provider Paytm said on Monday that the company has reached an estimate valuation of $10 billion (approx Rs 63,537 crore).
The latest valuation was achieved by Paytm after a secondary sale, in which existing and former employees of the leading e-payments brand sold part of their employee stock ownership plan (ESOP)s to new investors – including undisclosed family offices and a few western offices for Rs $47.2 million (Rs 300 crores approx).
With the latest valuation making Paytm the second most valuable startup in India, after Flipkart at $12 billion, the company said on Monday, “Company valuation rises close to USD 10 billion in latest round.”
Paytm’s last valuation in May 2017 was at around $7 billion, following funding from Japanese investor SoftBank, which ploughed in $1.4 billion (approx Rs 900 crores) in Paytm’s parent company – One 97 Communications.
A report released by Paytm on Monday further added that around 200 employees of the mobile payment provider liquidated their ESOPs – which are benefits aside from salary offered to employees in the form of shares in the company – for Rs 300 crore.
“Paytmers who have been with the company since inception to as early as one year have benefited,” said Paytm.
More than a year back, Paytm founder Vjay Shekhar Sharma sold a percent of his share in the company for Rs 325 crores, to raise funds for the company’s latest initiative – Paytm Payments Bank, which is a mobile-first bank officially activated in November 2017.
Paytm became extremely popular in 2016, after Prime Minister Narendra Modi implemented the demonetisation policy, thereby putting a ban on currency notes of the denomination Rs 500 and Rs 1000. Following its massive success in 2017, the mobile wallet application expanded its verticals to introduce new ventures like Paytm Payments Bank, paytm Mall and Paytm Money.