Softbank-backed Paytm on Monday said its valuation has reached to about United States 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.
It also offered various family offices and few western long-hold funds to gain entry with this round, it added without divulging further details.
"Company valuation rises close to United States dollars 10 billion in latest round", Paytm told Moneycontrol.
About 200 employees, both attached and unattached, of Paytm liquidated their Employee Stock Ownership Plan (ESOP) for around Rs 300 crore in the latest round. The employees stock options are benefits the employees alongside the salary offered to employees in the forms of share in the company.
The Alibaba and SoftBank-backed firm said it calculates the eligibility for awarding ESOPs based on an individual's contribution to the company, long-term potential and duration of employment.
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 Dollars 10 billion in latest round".
Last year, Paytm founder Vijay Shekhar Sharma had sold 1% of his share to raise Rs 325 crore.
"These employees, most of who have been with the company since inception, have benefitted", the firm said. As reported by TOI in December a year ago, Paytm's founder Vijay Shekhar Sharma had pledged his personal stocks worth about $50 million for ESOPs in Paytm ecommerce, which runs the online commerce business under Paytm Mall.
Paytm is not the only Internet company whose employees have reaped a windfall from stock options in recent times.
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.
While One97, the parent company of Paytm invested $8.8 million for their 55% stake, AGTech Holdings has invested $7.2 million for their 45% stake.
The sale comes less than a year after a similar transaction where 47 Paytm employees sold shares worth Rs 100 crore.