A group of former Paytm employees has started 22 new startups, which are currently valued at over Rs 10,000 crore collectively. While Paytm saw a surge in its stock during the second and third quarters of the current fiscal year, the Reserve Bank of India (RBI) intervened by prohibiting Paytm Payments Bank from accepting deposits.
RBI’s action stemmed from Paytm Payments Bank’s non-compliance with regulations, leading to a decline in Paytm’s shares. The bank’s customers faced a halt in banking services from March 1, following RBI’s directive.
According to recent findings, fintech startups dominate the entrepreneurial landscape in India, comprising 24% of all startups. Other prevalent sectors include e-commerce, media, entertainment, and software, collectively generating around 2,500 employment opportunities.
According to a report from Private Circle, former Paytm employees who left the fintech giant to establish 22 startups over the years have collectively amassed a valuation of ₹10,668 crore.
Paytm’s impact on the startup ecosystem is evident, with many new ventures thriving after the company’s Rs 300 crore Employee Stock Ownership Plan (ESOP) buyback in January 2018. Notable startups founded by former Paytm executives include Pocket FM by Rohan Nayak, Park Plus by Amit Lakhotia, and IndiaGold by Nitin Mishra.
Additionally, initiatives like Junio, FRN for audio dating, Cleardekho for eyewear, Janewise Club for senior citizens, Yoho for footwear, and Dalchini for vending machines have flourished under the guidance of former Paytm employees.
In essence, these startups signify the entrepreneurial spirit fostered by Paytm, driving innovation and economic growth in India’s startup ecosystem.
