Paytm Capitalized At $10 Billion As Staff Trade Sakes Worth $50 Million
Paytm is now capitalized at $10 Billion making it the 2nd most expensive internet company in India post Flipkart. The latest valuation of the company comes after 200 workers of the Noida-located company traded shares from the ESOP (employee stock ownership plan). This scooped up $50 Million. In 2017, Paytm had collected $1.4 Billion in its earlier funding round headed by SoftBank and was then capitalized at $7 Billion.
In the newest payment, Discovery Capital is one of the sponsors that has purchased shares from One97 Communications, the parent company of Paytm. A secondary payment is when a fresh sponsor purchases stakes from current sponsors but the fund does not go into coffers of the company.
Paytm has worker strength of almost 5,000. The firm evaluates the eligibility for rewarding ESOPs on the basis of the contribution of an individual to the company, duration of employment, and long-term potential. ESOPs are one of the most effectual retention and reward tools for fast and young growing intern startups. The success of Paytm has assisted create supreme wealth amongst its workers, a statement of the company claimed to the media in an interview.
As posted by the media in December 2017, Vijay Shekhar Sharma, the founder of Paytm, had promised his personal shares valued at almost $50 Million for ESOPs in Paytm ecommerce. Now Paytm ecommerce operates below Paytm Mall and runs the online commerce business. ESOPs are a main tool for any company to entice top quality experts but with most Internet firms of India not having gone communal, liquidity events for workers have been limited till now and hugely reliant on acquisition by a larger firm or dependent on secondary sales.
These programs of share buyback by the likes of Flipkart and Paytm might offer the much required power to the local startup bionetwork that has witnessed a handful years of hold back in financial support.