Paytm, a digital payment platform offering fintech startup expanded its Employee Stock Option Plan  by offering its employees with more than 2.81 lakh shares. These newly allocated shares are worth  around Rs 12.2 crore. The company offers a financial platform to make secure, seamless, and easy  transactions. The startup offers financial services and payment options designed to help merchants  scale up their businesses. 

The company mentioned in a stock exchange filing that the nomination and Remuneration committee  of the company allowed the allocation of 2,81,394 equity shares for Rs 1 each under the employee  stock option scheme of the company. The allocated shares comprise of Employee Stock Option Scheme 2019 and Employee Stock Options Scheme 2008 with 2,78,858 equity shares and 2,536 shares  respectively. The ESOPs are provided to employees with company stock to encash it after a specific  duration at a predetermined value. The main aim of this scheme is to find new talent, gain new  employees, and enhance productivity. 

Inc42 mentioned that Paytm’s ESOP 2019 scheme allowed the allotment of 87,373 stock options in  May. Earlier in 2023, the firm announced an additional 1.7 million stock options for its employees.  Nykka also expanded its ESOP after mass suspension to rebuild its employee brand. Paytm’s stock  increased by 9 percent and the firm is expecting a valuation of $100 billion. The startup reported a  decline in its workforce by 15-20% this year to reduce its losses. After the ESOP allocation company’s  paid-up, issued, and subscribed equity share capital increased to Rs 636,274,090. 

The fintech startup reported a three-time increase in net loss in y-o-y to Rs 550.5 crore for the fourth  quarter of FY24. The operational revenue had a 2.9 percent y-o-y decrease to Rs 2,267.10 crore in the  same duration. The company has been dealing with regulatory setbacks and other internal challenges.  The stock options under the ESOP scheme offered by the startup have a price set at Rs 1 per share.  The board approved granting these stock options to those under the Paytm employee stock option  scheme. Many startups announced their ESOP buyback programs to offer liquidity to employees  including Nykaa, Delhivery, and Purplle. 

Conclusion: 

Paytm announced about expansion of its employee stock option Plan by allocating 2,81,394 equity  shares to its employees. These newly allocated shares are worth around Rs 12.2 crore. The ESOPs help  a firm to gain new employees and enhance its productivity. By providing ESOP to employees with  company stock, one can encash it after a specific duration at a predetermined value. This fintech  startup offers a digital payment platform to provide a secure, seamless, and easy transaction to its  users. Paytm’s announced a 9 percent increase in its stock with a predicted valuation of 100 billion  USD. Paytm’s ESOP 2019 scheme allowed the allotment of 2,78,858 equity shares to employees  followed by 2,536 shares shares under the stock unit plan of 2008. The firm had a 2.9% decline in its  operational revenue for this fiscal year.