Paytm employees earn Rs 300 Cr via Esops sale

Existing and former employees of payments and financial services company Paytm have been able to liquidate their vested Esops (employee stock ownership plan) to earn Rs 300 crore ($47 million) during the company's recent secondary share sale, which values the entity at $10 billion.
 
This sale translates into Paytm becoming the second most valuable startup in the country and also paves way for various family offices and a few Western long-hold funds into the cap table, according to a statement.
 
The sale comes after a similar Rs 100-crore employee liquidity event by Paytm early last year. Till now, about 200 employees have been able to sell shares, realising Rs 500 crore.
 
Prior to this round, Paytm was valued at about $7 billion in May 2017 when the company raised $1.4 billion from SoftBank Group.
 
The company, which counts SoftBank, SAIF Partners, Alibaba and Ant Financial as its investors, has burgeoned with multiple products under its One97 umbrella - Paytm Mall, Paytm Payments Bank, Paytm Money and Paytm Wallet.
 
The new $10-billion valuation could also serve as a benchmark when Paytm looks to raise its next round of primary funding, timing for which is not yet decided, said investors tracking the space.
 
One97 Communications had hived off its e-commerce platform into Paytm E-commerce (Paytm Mall), while it became a 49% shareholder in the payments bank business due to regulatory reasons in mid-2016.
 
Shoot

Trending News

Why Amazon’s Flipkart bid is just not high enough

Selling without MRP, expiry dates to cost etailers

TCS hits $100Bn market cap: A new phase for India Inc?

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Flipkart-Walmart deal: What it means for the etailer and the whole industry

NCLAT stays CCI penalty of Rs 136cr on Google in search bias case

Walmart may rope in Google parent Alphabet for the Flipkart deal

Internet shutdown cost Indian economy $3 billion from 2012-17: Study

Flipkart and Amazon plan mega summer sales in May

International sales now account for 48% of Twitter's revenues

70% of mobile phones buyers in India opt for non-cash payments

Amazon India expects groceries & household products to account for 50% of business in 5 yrs

India to come out with a E-commerce policy framework in 6 months

Online learning platform Career Anna raises Rs 3 Cr funding

Wal-Mart will offer to buy up to 86% of Flipkart

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities