Paytm Will Be A $10 Bn Startup; Netflix’s Market Cap Crosses $100 Bn!
Paytm is all set to become a $10 billion startup after an upcoming secondary share sell.
There is some exciting news related to company valuations and market capital of startups – both in India and globally.
While India born digital wallet and payments bank Paytm is all set to be valued at $10 billion, thereby becoming India’s second highest valued startup after Flipkart; global on-demand entertainment behemoth Netflix has crossed $100 billion market capitalization, thereby surprising investors and analysts.
What is driving this amazing valuation of startups? We will soon find out.
Paytm Will Be A $10 Billion Startup!
Founded by ace entrepreneur Vijay Shekhar Sharma, Paytm is all set to be valued at $10 billion, which, if it happens, will make it India’s second most valued startup after Flipkart.
As per some insider reports, which haven’t been confirmed yet, some current and former employees and investors of Paytm will soon sell their equity under secondary share sell. This selling will drive up the current valuation of Paytm to $10 billion.
Paytm’s current valuation stands at $7 billion, which happened in May 2017, when SoftBank injected $1.4 billion as venture capital.
This secondary share sell will allegedly happen in the range of $50-70 million, and besides ex-employees, an investor: Discovery Capital would be also part of that.
In August 2016, Paytm was valued at $5 billion, and within a year, its valuation surged to $6 billion when three primary investors: Reliance Capital Ltd, SVB (Saama Capital) and SAP Ventures sold their equity to Alibaba Group Holding Ltd and Ant Financial Services Group.
Flipkart is right now India’s highest valued startup at $12.6 billion.
Netflix Breaches $100 Billion Market Capital!
Meanwhile, on-demand entertainment and streaming videos provider Netflix has recently breached $100 billion mark, which is a major surprise for its investors.
Netflix is a listed company in NASDAQ, and their IPO was launched in 2002. Since then, their shares have surged 22,000%, and for the first time, they breached the $100 billion market cap mark.
The primary reason for this jump in share prices is due to the steep addition of new subscribers into their platform: In the last three months of 2017, 2 million new subscribers joined Netflix, which boosted investors’ confidence, and helped to surge their market cap.
As soon as Netflix announced their 2 million new subscribers, their share prices jumped 9% to reach $248 at the end of Monday’s trading hours.
At the time of writing, Netflix share prices were trading at $247.85, up 20.27%.
RIght now, Netflix has 117.58 million subscribers across 190 countries, and in the US, they have convinced almost 50% of all households to become their paid users.