Paytm grants four million new ESOs; bitcoin reaches a 10-month low

The parent company of Paytm One97 Communications has granted nearly four million new stock options as part of its 2019 Employee Share Ownership Plan (ESOP), the company informed the exchanges. On Monday, the stock fell another 2.11% to close at Rs 556, about a quarter of its IPO price of Rs 2,150. In April, founder Vijay Shekhar Sharma told investors that his stock options would only vest once Paytm’s shares surpassed the IPO price on a sustained basis.

Stock market

Credit: Giphy

So in this letter:
■ Bitcoin falls to a 10-month low, mirroring tech stocks
■ Uber to cut costs, focus on the economy of the unit, the CEO tells the staff
■ 9Unicorns could extend its first fund to $ 120 million

Paytm offers new stock options to staff as the rout continues

Paytm ESOP employee share ownership plan

One97 Communications it granted 3.97 million new stock options to its employees, according to a stock exchange filing of the company.

The strike price of these stock options is Rs 9 each, the company informed the exchanges.

The company also assigned no. 177,114 shares to employees who exercised their options. One97 did not disclose the identities of those who were granted these stock options in its deposits.

Stock in batter: Since listing in November last year, One97’s shares have been pummeled and have fallen roughly 75% from the IPO price of Rs 2,150 per share. It closed on Monday at Rs 556, down 2.11% from the day.


Management got the first dibs: Before it went public last November, Paytm has granted new stock options to 166 former and current employeeswhich were then converted into company shares, regulatory documents showed.

Last September we reported that a significant part of the new stock options would go to CEO Vijay Shekhar Sharmawho owns 15% of the company after the IPO. Macquarie Research said in a report in February that 76% of the stock options granted by the company prior to its IPO went to Sharma.

So read | Paytm founder will have protective rights after listing

Others included President Amit Nayyar, who headed the financial services division of the company and stepped down in June 2021. Cumulatively, more than one million Esop was granted, mainly to senior staff members, at an exercise price of Rs. 9 each.

VSS vote to shareholders: After the stock went public, Sharma wrote to the company’s shareholders in Aprilstating that its stock options would only vest once Paytm’s shares exceeded the IPO price on a sustained basis.

Bitcoin dips to a 10-month low, mirroring tech stocks

Bitcoin if

Bitcoin fell to its lowest level since July 2021 on Monday, as the crash in equity markets continued to hurt cryptocurrencies, which are currently trading in line with so-called riskier assets like tech stocks.

Down, down down: Bitcoin fell to $ 32,763.16 just before 4:30 PM IST, in its fifth consecutive down session.

The cryptocurrency has dropped 13% so far in May and has lost more than half of its value since it hit an all-time high of $ 69,000 last November.

Ether, the second largest cryptocurrency in the world, which is the foundation of the Ethereum network, fell to $ 2,360 on Monday, its lowest since late February.

Also technical: The heavily tech-heavy Nasdaq fell 1.5% last week and has lost 22% this year so far, hurt by the prospect of persistent inflation forcing the US Federal Reserve to hike rates despite the slowdown in the rate. growth. Nasdaq futures fell a further 2.3% on Monday.

“I think everything within cryptocurrencies is still classified as a risk asset, and similar to what we saw with the Nasdaq, most cryptocurrencies are being pummeled,” said Matt Dibb, COO of the crypto platform with Singapore-based Stack Funds.

Fears about stablecoins: Bitcoin closed on Friday at around $ 36,000. Dibb said other factors in the decline in recent days have been the notoriously low liquidity of the cryptocurrency market on weekends and also short-lived fears that an algorithmic stablecoin called Terra USD (UST) could lose its peg to the US dollar.

Stablecoins are digital tokens anchored to other traditional assets, often the US dollar. UST is closely followed by the cryptocurrency community both for the new way it maintains its 1: 1 dollar peg, and because its founders plan to build a reserve of $ 10 billion worth of bitcoin to support the stablecoin, which it means volatility in the UST could potentially spill over into the bitcoin markets.

Tweet of the day

Uber to cut costs, focus on unit economics, CEO tells staff

Information on Chief Executive Officer Dara Khosrowshahi

Information on Chief Executive Officer Dara Khosrowshahi

He wants Uber cut costs and focus on becoming a leaner company in response to a “seismic shift” in investor sentiment, according to an email acquired by CNBC from CEO Dara Khosrowshahi.

What he said: “After the earnings, I spent several days meeting with investors in New York and Boston,” Khosrowshahi said in the email, which was sent late Sunday. “It is clear that the market is experiencing a seismic change and we must react accordingly.”

Tightening: Uber will cut marketing and incentive spending and treat hiring as a “privilege” to cope with the shift in economic attitudes, Khosrowshahi wrote.

“We need to make sure our economic unit works before we get big,” the Uber chief wrote. “Less efficient marketing and incentive expenses will be withdrawn.”

Uber will now focus on free cash flow profitability rather than adjusted EBITDA (earnings before interest, taxes, depreciation and write-downs), he said.

9Unicorns can extend the inaugural fund to $ 120 million

9 Unicorns can extend the inaugural fund

After completing its fifth close at $ 100 million, the 9Unicorns venture fund, which focuses on companies in the process of being created, it is expected to increase the size of its first fund to $ 120 millionaccording to a senior fund official.

Quote: “We are looking at a 7% or higher stake in the startup we invest in,” founding partner of investment firm Apoorva Ranjan Sharma told us.

Wallet: According to Sharma, 9Unicorns has invested nearly $ 45-50 million in various startups, such as Vedantu, Shiprocket, Biddano, BluSmart, and Faarms, Instoried and GoQii.

Other offers made

■ Technology platform for travel and hospitality Oyo said he has the acquisition of the European company “Direct Booker” with the transaction valuing the latter at around $ 5.5 million (Rs 40 crore). Direct Booker has more than 3,200 homes and has served 20 lakh customers so far, Oyo said.

Gemba Capitala micro venture capital firm, said it achieved a final closure of his first fund at Rs 75 crore. Gemba announced an inaugural corpus of $ 10 million (Rs 77.48 crore) last September. Up to 50% of the capital will be invested in fintech and SaaS startups, while the remainder will be distributed across a variety of industries, including web3, gaming, deep tech, healthcare and B2B commerce.

Elon Musk tweets about death in “mysterious circumstances”

Elon Musk

Tesla CEO Elon Musk has sparked a new social media controversy suggesting that he may die “under mysterious circumstances”.

“If I die under mysterious circumstances, it was nice to meet you,” she tweeted.

Hours earlier, Musk had shared a post that appeared to be a communication from a Russian officer claiming that the billionaire was involved in “providing fascist forces in Ukraine with military communications equipment.”

According to the letter, the equipment was given to Ukraine by the Pentagon.

Musk’s company SpaceX launched its Starlink satellite internet service in Ukraine in February after a minister in the war-torn country contacted him on Twitter.

Today’s ETtech Top 5 newsletter was edited by Arun Padmanabhan in New Delhi and Zaheer Merchant in Mumbai. Graphics and illustrations by Rahul Awasthi.