Paytm staff sold shares worth $150 million, valuing the company at $15 billion, according to founder Vijay Sharma. Indian startups with a turnover of over Rs 25 crore may now have to pay income tax.
Paytm valuation increases 25% to $15 billion
Digital payment wallet Paytm claimed its valuation rose 25% to $15 billion, Mint reported.
“Esops (employee stock ownership plan) worth $150 million were sold by Paytm’s employees to New York-based investors nearly three months ago, valuing the company at $15 billion,” Vijay Shekhar Sharma, founder of Paytm, told Mint.
Paytm, owned by One97 Communications, has about 14 million merchants using its services and it plans to increase the base to 24 million by the end of this fiscal, the report added.
Indian startups with turnover exceeding Rs 25 crore to pay income tax
Startups with a turnover of more than Rs 25 crore may have to pay income tax, The Economic Times reported.
These startups stand to lose out on the tax holiday and may even have to pay tax with interest, the report said.
The change in taxation is because the limit of Rs 25 crore has not yet been increased to Rs 100 crore in line with the norms of the department for promotion of industry and internal trade (DPIIT), the report added.
The DPIIIT’s measures were aimed to ensure a more helpful ecosystem for startups, which has been complaining about angel tax and other matters, the report said.
Zolostays may raise $100 mn
Bengaluru-based co-living space provider Zolostays is in talks with investors to raise around $100 million for its Series C round, Mint reported.
Nexus Venture Partners-backed Zolostays will use the funds to increase inventory and upscale furnishing options across its current inventory, the report added.
The startup had earlier raised $30 million in its Series B round from several investors including IDFC Alternatives, Mirae Asset and Nexus Venture Partners.
Founded in 2015 by Akhil Sikri, Isha Choudhry, Nikhil Sikri and Sneha Choudhry, Zolostays offers affordable housing for students, working professionals and freshers who move away from their hometown for education or in search of jobs.
Paytm Mall plans to set up business in Middle East
Paytm Mall, an ecommerce platform, will start operations in the Middle East, according to a report by the Business Insider India.
The development comes just weeks after US-headquartered ecommerce company eBay, bought a 5.5% stake in the company.
2GUD expands offerings to over 150 categories
Walmart-backed Flipkart announced that its independent value platform 2GUD has expanded its category offerings to more than 150 and has included fashion, home decor and kids to its offerings.
The platform will be transformed from a refurbished-only to a complete customer offering platform with all the categories, the company said in a statement.
“Apart from refurbished products, 2GUD will now additionally focus on a large segment of unbranded or lesser-known brands in home, fashion and accessories space with an emphasis on style and quality. This move will help us contribute to Flipkart’s larger vision of bringing the next 200 million Indians into the e-commerce fold,” said Chanakya Gupta, head of 2GUD, Flipkart.
Currently, 2GUD serves over a million customers across more than 3,000 towns, with around 60-65% of the orders coming from tier 2 and tier 3 markets.
Nexford University launches entrepreneurship scholarship
US-based Nexford University has rolled out an entrepreneurship scholarship to empower next-gen entrepreneurs across the world.
The university said it will fund five scholarships of $10,000 each every year.
“India is a budding center for entrepreneurship, and we know that entrepreneurs create jobs and spur prosperity. Through this initiative, we're providing entrepreneurs with the skills they need to move forward in life. Founders are doers, and they need practical skills – to build a business plan, launch a venture, and grow a team. So we're taking it one step further and funding the most promising startup ideas we receive,” said Fadl Al Tarzi, CEO, Nexford.