<ul><li>Kunal Shah-led <keyword id="1763236" type="General" weightage="20" keywordseo="cred" source="Orion">CRED</keyword> has increased its ESOP pool by $143 million.</li><li>This means that the employees at CRED will collectively hold up to 12.5% of this $4.01 billion business.</li><li>Every team member at CRED, regardless of their tenure or job profile, gets a stake in the company.</li></ul>Kunal Shah-led CRED has increased its employee stock option (<keyword id="173739" type="General" weightage="20" keywordseo="esops" source="Orion">ESOPs</keyword>) pool by $143 million taking the total tally to half a billion dollars. This means that the employees at CRED will collectively hold up to 12.5% of this $4.01 billion business, the fintech startup told Business Insider. The company also highlighted that every team member at CRED, regardless of their tenure or job profile, gets stock in the company. Currently, CRED has a team size of 600 employees. The company did not reveal the exercise price, the price at which employees can buy these stock options for. However, it is usually at a discount compared to the price at which investors invest. “This is aligned with the culture of ownership and wealth creation that we drive as an organisation. Our growth is due to the commitment of our team and we will continue to support them to leverage ESOPs for their own wealth creation journeys,” the three-year-old company said. The company also runs an Accelerated Wealth Programme, where team members can choose up to 50% of their annual cash compensation in the form of special grant ESOPs. “Our ratio of ESOP pool per employee is amongst the highest in the industry,” the company claims. According to a<a href="https://www.businessinsider.in/business/startups/news/nykaa-zomato-paytm-oyo-and-policybazaar-made-their-employees-millionaires/slidelist/88552831.cms"> report </a>by Longhouse Consulting, Flipkart has created the largest ESOPs pool of $2.26 billion (₹17,000 crore). It is followed by Zomato with $750 million, Paytm with $610 million and Nykaa with a $570 million pool. Founded in 2018, CRED started off as a credit card bill payments app. Over the years, it has entered e-commerce, lending, payments and now investment segments. The company currently claims to have over 9.5 million users. About 25-30% of all credit card bill payments in India are processed by CRED, founder and chief executive officer Shah had previously mentioned. CRED has raised <a href="https://www.businessinsider.in/business/startups/news/kunal-shahs-cred-doubles-its-valuation-to-4-billion-in-less-than-six-months/articleshow/87129405.cms">over $700 million to date </a>and is backed by marquee investors like Tiger Global, DST Global, Sofina, Dragoneer Investment Corp and Steadfast Capital management to name a few. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/hul-bajaj-auto-lampt-infotech-and-other-hot-stocks-on-january-20/slidelist/89008387.cms">HUL, Bajaj Auto, L&amp;T Infotech and other hot stocks on January 20</a> <a href="https://www.businessinsider.in/india/news/indias-daily-covid-19-count-surpasses-three-lakh-after-eight-months/articleshow/89009476.cms">India’s daily COVID-19 count surpasses three lakh after eight months, Omicron tally climbs to 9,287</a> <a href="https://www.businessinsider.in/tech/news/best-deals-and-offers-on-echo-smart-speakers-fire-tv-sticks-on-amazon-sale/articleshow/88997777.cms">Amazon Republic Day Sale 2022 — Best deals and offers on Echo smart speakers, Fire TV Sticks and more</a>

CRED says that all its employees get stock options, expands pool to $500 million

<ul><li>The share buyback completed on January 1, 2021, was a part of the startup’s $81 million Series C round. </li><li>With the latest fundraise, <keyword id="1763236" type="PERSON" weightage="20" keywordseo="CRED">CRED</keyword> is now valued at $806 million.</li><li>The startup claims that it has 5.9 million users and processes 20% of all <keyword id="10540009" type="UNKNOWN" weightage="20" keywordseo="credit-card-bill-payments">credit card bill payments</keyword> in India. </li></ul>Indian fintech startup CRED, an app that helps you pay and manage your credit card bills in exchange for a bunch of rewards, has bought back shares worth $1.2 million from its employees. The share buyback completed on January 1, 2021, was a part of the startup’s $81 million Series C round. The startup founded by serial entrepreneur <keyword id="192201" type="PERSON" weightage="20" keywordseo="Kunal-Shah">Kunal Shah</keyword> is now valued at $806 million. The latest round was led by partners of DST Global and also saw participation from existing investors Sequoia Capital India, Ribbit Capital, Tiger Global, and General Catalyst. Others who participated in the round were Sofina, Coatue, and Satyan Gajwani of Times Internet. “As we raise funds to support our next phase of growth, it's important to acknowledge the role that employees have played in our success. We are committed to enabling wealth-creation opportunities for them and have allocated 10% of our cap table allocated for ESOPs even at the Series C stage. I am grateful for their conviction, as well as that of our investors, and am focused on creating value for them as the product and business evolves,” said Kunal Shah, Founder, CRED. The two-year old startup allowed eligible employees to sell up to 50% of their vested ESOP shares in the company. Launched in November 2018, the credit card payments startup has been in the news for its fast grown popularity among users. The startup claims that it has 5.9 million users and processes 20% of all credit card bill payments in India. “Over 35% of premium credit card holders in India are on CRED, with members spending 2X of the average credit card user in India,” said the company. SEE ALSO: <a href="https://www.businessinsider.in/international/news/questions-arise-about-jack-ma-whereabouts-as-alibaba-faces-scrutiny-from-the-chinese-government/articleshow/80090457.cms">Where is Jack Ma? Questions arise about the billionaire’s whereabouts as Alibaba faces scrutiny from the Chinese government</a> <a href="https://www.businessinsider.in/tech/news/heres-how-keeping-your-new-years-resolution-to-quit-facebook-twitter-and-instagram-could-change-your-life/articleshow/80095064.cms">New Year’s resolution to quit Facebook could leave you happier, but a little out of the loop</a>

Kunal Shah’s CRED buys back shares worth $1.2 million from its employees

<ul><li><keyword id="1763236" type="General" weightage="100" keywordseo="cred" source="Orion">CRED</keyword> said that it will acquire SaaS startup <keyword id="1561651" type="General" weightage="80" keywordseo="creditvidya" source="Orion">CreditVidya</keyword> in a stock-and-cash deal. </li><li>The two organisations will work independently, but CRED will offer benefits, including stock options, to CreditVidya’s team members. </li><li>Earlier in 2021, CRED also acquired liquor delivery app HipBar and expense management platform Happay. </li></ul>Bengaluru-based fintech <keyword id="152045" type="General" weightage="20" keywordseo="unicorn" source="Orion">unicorn</keyword> CRED said on Tuesday that it will acquire CreditVidya, a Hyderabad based SaaS company, in a cash and stock deal. The companies have not disclosed the value of the transaction. “We’ve invested in building category-defining products that bring financial services to credit under-served Indians through our partners, transforming how risk is assessed and trust measured to drive financial inclusion,” said Abhishek Agarwal, co-founder &amp; CEO, CreditVidya. The closure of the <keyword id="30334" type="General" weightage="20" keywordseo="acquisition" source="Orion">acquisition</keyword> is subject to requisite approvals. CreditVidya offers a lending-as-a-service platform, and is valued at <a href="https://techcrunch.com/2022/11/29/cred-acquires-creditvidya/?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAIEqG4ol0n6HJIq1C2xkwEeKGCvQPWkytEMXW9DgRmzH7XMV8L4luW_sL41qqIwizKXU4d6_-KdAE8eidDEcpsbiYfF2-lA-sOf2Vn9WxamhRmqzBYtTFCmuk9VpBpwD6El0gD06mreob9RAnrSAMk78jehxg2haAivSmwTUD7Dj">about $30 million post-money</a>. It enables lenders to assess a loan applicants’ creditworthiness. Many of the applicants it processes are first-time borrowers. Founded in 2018, CRED, which went viral for its out-of-the-box advertisements, stated that the two organisations will continue to work independently. It will also offer its ESOP programme and other benefits to CreditVidya’s 200-plus team members. “Expanding access to credit is a key driver for financial progress. CreditVidya's patented tech stack uncovers signals of trust among under-served cohorts. We look forward to supporting them in powering an inclusive credit ecosystem,” said Kunal Shah, founder, CRED. Backed by Tiger Global and Sequoia India, among others, CRED has been on an acquisition spree since October 2021, when it <a href="https://timesofindia.indiatimes.com/business/india-business/cred-acquires-liquor-delivery-app-hipbar/articleshow/87193580.cms">acquired </a>liquor delivery app HipBar, followed by expense management platform Happay in December. It also invested in lending partner LiquiLoans earlier this year. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/jio-haptik-and-cashe-partner-to-deliver-instant-credit-lines-on-whatsapp/articleshow/95859261.cms">Jio Haptik and CASHe partner to deliver instant credit lines on Whatsapp</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/recent-ipo-successes-could-lead-to-recovery-in-the-primary-market-ey/articleshow/95858664.cms">Recent IPO successes could lead to recovery in the primary market: E&amp;Y</a>

Fintech unicorn CRED to acquire SaaS startup CreditVidya

Members-only <keyword id="1763236" type="PERSON" weightage="20" keywordseo="CRED">cred</keyword>it card management and bill payments platform CRED on Tuesday said it has raised $215 million (about Rs 1,579 crore) in a Series D funding round at a post-money valuation of $2.2 billion. New investor Falcon Edge Capital and existing investor Coatue Management led this round, while Insight Partners joined the CRED cap table. Existing investors DST Global, RTP Global, Tiger Global, Greenoaks Capital, Dragoneer Investment Group, and Sofina have also participated in this round, CRED said. Marking its entry into India's unicorn club, the company said it will also offer its team another ESOP buyback opportunity, with a cumulative value of $5 million. "With the credit card category in India expanding rapidly, we have a massive opportunity to shape responsible behaviour, imagine new use cases, and create a rewarding platform for members," CRED Founder <keyword id="192201" type="PERSON" weightage="20" keywordseo="Kunal-Shah">Kunal Shah</keyword> said in a statement. "Our growth in the past year has demonstrated the potential value of the high-trust, low-friction platform the CRED team has been building, and we are delighted to share the value created with investors, team members, as well as partners and the CRED community." The new funding round comes after the company raised $81 million in its Series C round, which put the company at $806 million valuation.

Kunal Shah's CRED raises $215 million to be India's latest unicorn with a valuation of $2.2 billion

<ul><li>With <keyword id="8420431" type="UNKNOWN" weightage="20" keywordseo="budget-2021">Budget 2021</keyword> around the corner, India’s IT body NASSCOM has submitted its suggestions for <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">startups</keyword> which includes further tax relaxations for employee stock ownership plans. </li><li>NASSCOM’s public policy head said that <keyword id="173739" type="PERSON" weightage="20" keywordseo="Esops">ESOPs</keyword> should be taxed only when an employee sells the shares.</li><li>During Budget 2020, Finance Minister Nirmala Sitharaman had said that ESOPs can be taxed within five years or when they leave the company or when they sell their shares, whichever is earliest.</li></ul>When India’s Finance Minister Nirmala Sitharaman announced tax relaxations for Employee Stock Ownership Plans (ESOPs) during Budget 2020, India’s entrepreneurs welcomed the decision. But one year down the line, they are having second thoughts. “The Finance Minister had relaxed the conditions with respect to the Employee Stock Ownership Plans but that’s not sufficient based on the industry feedback. What the industry really requires is that the liability of paying the tax should be deferred to the time when the shares are actually sold by the employees,” Ashish Aggarwal, Nasscom’s Public Policy head <a href="https://twitter.com/nasscom/status/1352200095735791617">shared </a>the suggestions the IT body has sent to the government. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">What Budget 2020 said </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Budget 2021 demand from NASSCOM </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ESOPs can be taxed within five years or when they leave the company or when they sell their shares, whichever is earliest. </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ESOPs should be taxed only when an employee sells the shares, when they have the liquidity. </td></tr></tbody></table> Entrepreneurs too agree. “Most startups, irrespective of the sector they operate in, typically take more than five years to list themselves in the stock exchange and become a listed company or carry out an exit or sell-out. Second, it does not apply to an employee who is exiting a company as an employee. So, a person who has already spent several years in a company and wishes to move on, his ESOPs earned during employment will not be eligible for deferment of taxes. In crux, I would urge the government to review these preconditions to support the startup industry at large,” said Ankit Prasad, Founder and CEO, Bobble AI. In the past year, multiple startups have been buying back shares from their employees as a way of rewarding them. Recent startups which rolled out ESOP buyback plans <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Swiggy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$7-9 million <a href="https://entrackr.com/2020/11/swiggy-to-reward-its-employees-with-esop-liquidity-program/">(reported value)</a> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Unacademy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$4 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Urban Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Zerodha </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$8.7 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CRED </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.2 million </td></tr></tbody></table> However, Archit Gupta, founder and CEO of ClearTax believes that just deferment of tax isn’t enough, instead some exemption of tax on sale of ESOPs should be brought in. “It can become an effective means to attract and retain talent,” Gupta told Business Insider. But a crucial question still remains – who can avail this benefit? Aggarwal said the benefit should be extended to all startups and not just eligible startups. “DPIIT on its platform has over 40,000 startups but out of that only 400 are eligible startups, who have got an approval of certification for tax benefits,” he said. SEE ALSO: <a href="https://www.businessinsider.in/defense/news/us-new-president-joe-biden-will-oppose-new-delhis-5-5-billion-deal-with-russia-for-the-s-400-missile-as-per-washington-d-c-based-expert/articleshow/80382062.cms">INTERVIEW: Joe Biden may be as harsh as Donald Trump if India insists on buying S-400 missiles from Russia, says a Washington D.C-based expert</a> <a href="https://www.businessinsider.in/business/auto/news/bajaj-auto-just-posted-a-record-quarter-as-pent-up-demand-brings-highest-ever-sales-for-its-signature-bikes-pulsar-and-boxer/articleshow/80384430.cms">Bajaj Auto just posted a ‘record quarter’ as pent up demand brings highest ever sales for its signature bikes – Pulsar and Boxer</a>

NASSCOM says Budget 2021 should ensure ESOPs are taxed only when shares are sold

<ul><li>The Microsoft-backed startup has announced the distribution of $739,000 (over ₹5 crore) to liquidate eligible ESOP options. </li><li>In this programme, which is a first for the company, eligible employees can liquidate 35% of their shares. </li><li>With the announcement, <keyword id="3966270" type="PERSON" weightage="20" keywordseo="FarEye">FarEye</keyword> joins the long list of <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">startups</keyword> who have been doling out rewards in <keyword id="173739" type="PERSON" weightage="20" keywordseo="Esops">ESOPs</keyword> to employees.</li></ul>Indian logistics platform FarEye is the latest to dole out rewards for employees by announcing a liquidation programme for ESOPs (Employee Stock Option Programme). The Microsoft-backed startup has announced the distribution of $739,000 (over ₹5 crore) to liquidate eligible ESOP options. In this programme, which is a first for the company, eligible employees can liquidate 35% of their shares. “We announced this liquidation to make employees partners in our success and to ensure they are able to create wealth for themselves and their families. The team has been able to generate significant liquidity for themselves, which gives us immense happiness &amp; satisfaction. With this program, we will be able to reward our most important asset - our employees,” said Kushal Nahata, CEO, FarEye in a statement. With the announcement, FarEye joins the long list of startups who have been doling out rewards in terms of ESOPs to employees. Recent startups which rolled out ESOP buyback plans <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Swiggy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$7-9 million <a href="https://entrackr.com/2020/11/swiggy-to-reward-its-employees-with-esop-liquidity-program/">(reported value)</a> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Unacademy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$4 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Urban Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Zerodha </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$8.7 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CRED </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.2 million </td></tr></tbody></table> During the lockdown months, FarEye saw a spike in usage, expanded internationally and most recently raised $13 million in funding, closing the round where it raised $24.5 million in April. FarEye saw a month-on-month 180% increase in usage during the lockdown months as it enabled B2B (business to business) and B2C (Business to consumer) last mile delivery. “The sector in which we operate is currently digitized to less than 10%, so there is a race for the rest 90%. We want to separate out in the play where the SAPs, Oracles operate. The last mile market is reported to be $55 billion by 2025, our aim is to be in the top 4 players in the market and for that you need just 5% of the market,” Amit Bagga, Chief Revenue Officer, FarEye told Business Insider in a<a href="https://www.businessinsider.in/business/startups/news/microsoft-backed-fareye-sees-a-trillion-dollars-in-wasted-costs-across-the-global-supply-chain/articleshow/77864135.cms"> recent interview.</a> The Microsoft-backed 11-year old startup offers predictive analysis in the logistics sectors – where it gives its clients visibility over demand and buying trends. It works across channels – from manufacturers to retailers. Some of FarEye’s current clients are DHL, Amway, Hilti, Walmart, Domino’s, and Zomato.

FarEye is the latest to buy back shares from employees —  to liquidate ESOPs worth over ₹5 crore

India’s leading digital payments and financial services firm <keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword> swung to an operating profit for the first time in Q3FY23, significantly ahead of its target of September 2023. The QR and mobile payments pioneer posted EBITDA before ESOP costs of ₹31 crore, showing an improvement of ₹424 crore from a year ago. Paytm said its revenue from operations rose 42% year-on-year to ₹2,062 crore in the October-December quarter, with growth driven by increase in merchant subscription revenues, growth in loan distribution and momentum in commerce business. Paytm Founder and CEO Vijay Shekhar Sharma tweeted, “Paytm, a business built from scratch with conviction on Digital India. From our first app release to becoming a verb in India to operating EBITDA profitability milestone - all in 10 years! Super Proud of Paytm team.” <div type="twitter" handle="kunalb11" handlename="Kunal Shah" image="http://pbs.twimg.com/profile_images/1190747917998546944/D3U5FNa7_normal.jpg" favoritecount="243" retweetcount="3" status="@vijayshekhar @Paytm Congrats, Vijay." createdat="1675442785000" id="1621550689112543232"></div> <div type="twitter" handle="RajanAnandan" handlename="Rajan Anandan" image="http://pbs.twimg.com/profile_images/378800000840024871/fb10b21c1166534dc307442c4f07f406_normal.jpeg" favoritecount="31" retweetcount="4" status="Congratulations @vijayshekhar and team @Paytm! https://t.co/y322QUVfHL" createdat="1675443652000" id="1621554324408242176"></div> The news of Paytm's profitability has been met with celebration from the startup and investor community, with CRED Founder Kunal Shah and Sequoia Capital India MD Rajan Anandan taking to social media to congratulate the company and its founder Vijay Shekhar Sharma. Alan Mamedi, the Co-Founder and CEO of Truecaller and noted YouTuber and investor Tanmay Bhat also congratulated Sharma. <div type="twitter" handle="thetanmay" handlename="Tanmay Bhat" image="http://pbs.twimg.com/profile_images/870589688465182720/RhRnOiGG_normal.jpg" favoritecount="86" retweetcount="0" status="@vijayshekhar @Paytm Awesome stuff! Congrats VSS!" createdat="1675443083000" id="1621551938314866691"></div> “Good first steps in the Marathon that lies ahead Vijay,” wrote UpGrad co-founder and serial entrepreneur Ronnie Screwvala. <div type="twitter" handle="helloanand" handlename="Anand Jain" image="http://pbs.twimg.com/profile_images/1460472641647611908/wW0e3qqx_normal.jpg" favoritecount="2" retweetcount="0" status="@vijayshekhar @Paytm Superb boss 🙏" createdat="1675445233000" id="1621560956546605061"></div> Edtech startups LEAD’s Sumeet Yashpal Mehta, Stage.in’s Vinay Singhal, HalloApp’s Neeraj Arora, logistics aggregator Raaho’s Imthiaz and CleverTap’s Anand Jain were among the founders who celebrated Paytm’s success and expressed their excitement for the company’s future. <div type="twitter" handle="neerajarora" handlename="neeraj arora" image="http://pbs.twimg.com/profile_images/1528054943671672833/1415qxDr_normal.jpg" favoritecount="23" retweetcount="0" status="@vijayshekhar @Paytm well done, a great milestone not only for Paytm but also the tech ecosystem." createdat="1675452310000" id="1621590637270245379"></div> HalloApp Founder and former Chief Business Officer of WhatsApp Neeraj Arora, who is also an independent director on Paytm’s board, called the development a great milestone not only for Paytm but for the entire tech ecosystem. Paytm's journey to profitability has become a source of inspiration for many other startups. “Inspiring for us. Headed in the same direction!” LEAD’s Sumeet Yashpal Mehta responded to Sharma’s tweet. “The sharp execution that you’ve privately been known for, was publicly visible in every single announcement over last few quarters .. was only a matter of time Excited about following the journey to $100Bn!!" wrote Leverage Edu’s founder Akshay Chaturvedi. <div type="twitter" handle="kapoortej" handlename="kapoortej" image="http://pbs.twimg.com/profile_images/1382138723261829122/6EwS2Nlj_normal.jpg" favoritecount="1" retweetcount="0" status="Many congratulations @vijayshekhar and team @Paytm ! 🚀 https://t.co/fO44JQUZLc" createdat="1675443834000" id="1621555086622343168"></div> Several venture capitalists including IvyCap Ventures’ Tej Kapoor, Ritesh Banglani of Stellaris Venture Partners and Pankaj Jain of Saka Ventures applauded Paytm’s feat. “Congratulations Vijay and the whole Paytm team! May this quarter be the first step in a long, profitable future,” said Banglani. <div type="twitter" handle="banglani" handlename="Ritesh Banglani" image="http://pbs.twimg.com/profile_images/1595727692581986307/7UC1g2J8_normal.jpg" favoritecount="2" retweetcount="0" status="@vijayshekhar @Paytm Congratulations Vijay and the whole Paytm team! May this quarter be the first step in a long, profitable future." createdat="1675449019000" id="1621576835476918273"></div> Several social media users congratulated Sharma on Paytm’s profitability milestone and inspiring youngsters across India. In a letter to shareholders, Paytm’s Sharma said he is confident the company will soon achieve its next milestone of becoming a free cash flow generating company. Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on insiderstudios@businessinsider.in

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