More than 100 former and current employees of Paytm have become rupee millionaires as India’s second largest start-up completed stock sales worth Rs500 Cr.
Softbank-backed digital payments and services company Paytm, at least 200 of its employees have become millionaires, with an overall valuation of about $10 billion. where several existing employees sold a portion of their shares to new members of the company Paytm said the company valuation has inched very close to the $10 billion-mark in the latest round. 200 employees of the company liquidating their Employee Stock Ownership Plan (ESOPS) for approximately Rs 300 crore. Employees of companies often get ESOPs as extended benefit plans and these are in form of states in firms. “Paytmers who have been with the company since inception to as early as one year have benefited” from the recent round of ESOP sales.
Paytm’s latest valuation is $3 billion higher than what it was valued at in March 2017, when it raised funds from SoftBank Group Corp. of Japan.
There are another 100-150 more employees who are dollar millionaires on paper,” said founder Vijay Shekhar Sharma, who liquidated 1% of his stock last year to raise Rs 325 crore for Paytm’s payments bank business. Esops are financial instruments that allow employees to own shares that they may sell for cash after a predefined period of time.