Fintech giants Paytm and Mobikwik have announced significant new employee stock option (ESOP) grants as part of their ongoing talent retention and incentive strategies, even as they continue to optimize operations and reduce losses.
Paytm Rolls Out ₹215 Cr ESOPs Under 2019 Plan
Paytm, operated by One97 Communications, has approved the grant of 23.7 lakh stock options under its ESOP 2019 plan, according to a regulatory filing with the National Stock Exchange (NSE).
At the current market price of ₹906 per share, the total value of the ESOP grant is estimated at ₹215 crore.
Each stock option carries an exercise price of ₹9 and is convertible into one fully paid-up equity share upon vesting.
Additionally, 3.46 lakh options under the same plan were marked as lapsed, likely due to employee exits or non-vesting.
Recent Developments at Paytm
This ESOP issuance follows several strategic moves by the company:
- Vijay Shekhar Sharma, MD & CEO of Paytm, voluntarily gave up 2.1 crore shares (worth approx. ₹1,800 crore) earlier this year.
- Ant Group sold a 4% stake in Paytm for around ₹2,103 crore ($246 million) in May 2025.
Despite market turbulence, Paytm continues to prioritize employee alignment and long-term growth through equity incentives.
Financial Snapshot – Paytm (FY25)
- Q4 FY25 Revenue: ₹1,911 crore (down 16% YoY)
- Q4 Losses: ₹23 crore (down 96% YoY)
- FY25 Revenue: ₹6,900 crore
- FY25 Losses: ₹663 crore
Mobikwik Grants ESOPs Worth ₹9 Cr
Meanwhile, rival Mobikwik has granted 3.27 lakh stock options under its 2014 ESOP Plan, valued at approximately ₹9 crore, based on the company’s prevailing share price of ₹276.
Financial Snapshot – Mobikwik (FY25)
- Q4 FY25 Revenue: ₹268 crore
- Q4 Losses: ₹56 crore
- FY25 Revenue: ₹1,192 crore
- FY25 Losses: ₹121 crore
ESOP Trends in Indian Fintech
The resurgence of ESOP issuances among leading fintechs signals a renewed push to retain top talent, motivate teams amid market volatility, and align long-term value creation with employee participation.
With regulatory tightening, market consolidation, and funding becoming selective, fintech firms are increasingly turning to stock-based compensation to reward performance and reduce upfront cash burn.
Conclusion:
As Paytm and Mobikwik navigate financial headwinds, their focus on equity-linked rewards showcases a broader industry trend of aligning employee incentives with sustained business performance and shareholder value.