Paytm Mall to offer stock options worth $50 million to employees

Indian e-commerce majors in order to retain their employees are offering stock options under Employee Stock Ownership Plan (ESOP) programme. The latest to join this trend is Alibaba backed Paytm Mall.
Paytm Mall- Facebook

The initiative has been taken by Paytm’s founder Vijay Shekhar Sharma who has relinquished 5 percent of his 19 percent share in the e-commerce entity in order to accommodate ESOPs for the employees. The stocks for employees under Paytm’s ESOP programme are estimated to be around Rs 320 crore (approx $50 million).
After the success in the digital payments sector, Paytm is bullish on the e-commerce market and eyeing the number one spot in India. As the employees are expected to play a major role in achieving this goal, the company is smartly luring them with stocks which motivate them to work harder as they yield better results if the company does well.
Recently, India’s leading e-commerce player Flipkart had spent around Rs 642 crore (approx $100 million) to buy back stocks from current and former employees under the company’s Employee Stock Ownership Plan (ESOP) programme.
"I have given parts of my holding towards the employee share pool. I had done something similar long time back for One97 Communications and I have done this now for Paytm Mall," Sharma was quoted as saying by the Times of India.
Employees who were offered Paytm's parent One97 Communications stocks encashed it this year which cost the company Rs 100 crore ($15.6 million).
Paytm Mall is keen on rapidly expanding its base in India and already started talks to raise funds with investors. Softbank is expected to pump in 1932 crore rupees ($300 million) into the e-commerce entity next year to help the firm with its expansion plan.
Paytm has already stated that it will invest 2-2.5 billion dollars in e-commerce as it aims to reach the top in India’s e-commerce market in 3 to 5 years.

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