Paytm Doubles Down on Employee Ownership with Latest ESOP Grant

India's fintech giant Paytm has allotted over 4 lakh equity shares to eligible employees under its ESOP plan, signaling a commitment to employee retention and motivation amidst a dynamic market landscape. TICE gets you inside details of its game-changing ESOP plan. 

Paytm's ESOP Allocation and Market Performance

Paytm's parent company, One97 Communications Limited, recently granted 4,05,190 equity shares to its employees. This move, approved by the board on November 7th, 2024, is part of the company's Employee Stock Option Scheme 2019. The allotment has increased Paytm's issued and paid-up equity share capital to INR 63,71,37,829 crore.

This announcement comes on the heels of a 4.5% increase in Paytm's stock price, currently trading at INR 831.40 per share on the BSE. The company's market capitalization now stands at an impressive INR 52,976.16 crore.

Read More: Negotiating ESOP: How Much ESOP Should You Ask for from a Startup?

Expanding ESOP Pool and Recent Initiatives

Paytm has been actively expanding its ESOP pool. In October, the company granted an additional 4.81 lakh stock options to its employees, demonstrating its commitment to rewarding and retaining talent.

This move aligns with Paytm's recent efforts to enhance its offerings and user experience. The company recently launched a new feature that allows users to download their UPI transaction statements directly from the application. This feature aims to simplify expense tracking, budget management, and tax filing for Paytm users.

Leadership Changes and Financial Performance

Paytm has also witnessed some leadership changes. Shreyas Srinivasan, the company's chief product officer and head of consumer products, stepped down from his role earlier this week. This follows Zomato's recent acquisition of Insider.in, Paytm's ticketing and events platform.

In October, Paytm announced a consolidated profit after tax (PAT) of INR 930 crore for the September quarter of FY25. This is a significant turnaround from the loss of INR 292 crore reported in the same period last year. The PAT includes a one-time exceptional gain of INR 1,345 crore from the sale of its entertainment ticketing business. However, revenue from operations decreased by 34% year-on-year to INR 1,1660 crore in the reported quarter.

ESOPs in the Indian Startup Ecosystem

Paytm's ESOP allocation is part of a broader trend in the Indian startup ecosystem. Startups across various sectors are increasingly using ESOPs to attract, retain, and motivate employees.

Logistics giant Delhivery recently allotted 73,300 stock options under its ESOP 2012 scheme. Fintech SaaS startup Zaggle and beauty and fashion e-commerce major Nykaa have also allocated significant equity shares under their respective ESOP schemes.

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Paytm's recent ESOP allocation and strategic initiatives highlight its commitment to employee empowerment and growth. As the Indian startup ecosystem continues to evolve, ESOPs are playing a crucial role in attracting and retaining top talent. Paytm's proactive approach to ESOPs positions it as a leader in this space and reinforces its commitment to long-term growth and success.

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