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How An Investment Of ₹8 Lakh Made Paytm The Billion Dollar Company It Is Today

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By Suveen Sinha:

In 2003–04, Vijay Shekhar Sharma was hardly ever seen at home, not if there was still daylight.

As One97 grew bigger, it needed more money because it was running more servers, bigger teams, and had to pay royalty on the music. But the tech bubble had popped and all technology companies were seen as spoiled children to be straightened out. Finally, the money ran out. So One97 took loans, and then some more loans at higher rates of interest, as high as 24 per cent, and became caught in a vicious cycle.

Any money that came in went into paying the interest, office rent and salaries for the twenty-five people team. Vijay, who paid himself the last, had no money to pay his house rent. So he would go home only late at night and scale the walls to get into his own house to sleep. He would wake up early in the morning and run away so the landlord would not see him.

His landlord was a rich, genial soul. ‘Beta,’ he would tell Vijay, ‘you should save some money for house rent.’

‘Sorry, uncle,’ Vijay said each time, ‘The problem happened only this month, it will be fine the next month.’

But next month would only be worse, and the time came when Vijay did not have money for food. So he would pile on to friends so he could eat at their place. The paranthewallah near Moolchand Hospital in south Delhi, known for his delicious, low-priced fare served late into the night, became a source of sustenance. Vijay would walk down to it after work, but with an eye on his wallet. Two cups of tea in the winter was a luxury—a far cry from the days of golgappa shots without vodka. ‘The circle of life,’ says Vijay, with a guffaw.

Some days he would do training or consultancy work to make money. He would go to companies and teach their employees about the Internet. He was paid Rs 1000 for a day of training. For some of the companies, he would set up a website and email while his team ran the One97 operations. The money Vijay earned this way kept One97 going.

While on the training-consultancy circuit, Vijay ran into Piyush Agrawal, whose Polar Software needed help with its technology. Vijay’s work took Agrawal’s company from no profits to a handsome profit.

‘Why don’t you become the CEO of my company?’ asked Agrawal.

‘I can’t,’ said Vijay, ‘I have my own company to run.’

‘Think about it,’ said Piyush.

And Vijay did.

This was in 2004. Vijay was twenty-six. His parents were frantically looking for a suitable bride for him. But there was a problem.

Vijay’s father would initiate negotiations with a girl’s family. The girl’s side would initially be very keen, given Vijay’s status as an electronics and communications graduate from Delhi College of Engineering. Someone from the girl’s side would come over to meet him, then things would go very quiet.

Vijay’s father was puzzled. But then he figured it out. The girl’s side went quiet once they discovered Vijay was not bringing home a guaranteed amount in salary every month. The father was now pushing Vijay to shut down his company and take up a job, one that would pay him at least Rs 30,000 a month. That, the father believed, would be a strong magnet to fetch him a good girl. He also ticked off Vijay for having taken loans from friends and family. ‘I don’t like it,’ he would say.

All this would bring tears to Vijay’s eyes. He had given his blood and sweat to One97; he could not bear to shut it down. But he could no longer stave off his father’s nagging.

So he spoke to Piyush Agrawal.

‘Why don’t I work for you half a day every day and you pay me Rs 30,000 a month? I will be your CEO, but only for half of the working day.’

For Piyush, it was a steal. He was getting a CEO who had brought his company into profits even while working as an outsider. Now he was ready to go full-time. So what if it was for only half the working day? Whoever got a good CEO for Rs 30,000 a month?

The deal was done. Vijay told his family he had become a CEO and was earning Rs 30,000 a month. In 2005, Vijay got married to a girl from Jaipur.

The wedding was a simple affair. It had to be, since Vijay had no cash flow and he did not want his parents or his wife’s parents to spend on the wedding. The budget had to be kept within Rs 2 lakh, which he had had borrowed from a chap who was his partner in XS Corps, his first company.

He has a delightful little son now, on whom he dotes, and who visits him at office from time to time and sits in his lap. But Vijay is still not sure that getting married was the right thing to do.

‘The spouse has a lot of expectations from a new relationship. But I could not devote time to my wife even if I wanted to.’

All his time was spent trying to keep One97 going, which was becoming difficult with each passing day.

One day, Piyush Agrawal asked Vijay what his company did and why it needed so much of his time. Vijay told him about One97’s business of systems and content, how the content was delivered to the consumer through texts and calls, and how the money was charged by the operator and shared with One97.

‘How can I help?’ asked Piyush.

‘Give me a loan of Rs 8 lakh,’ said Vijay. ‘That is the amount of loan I need to repay.’

‘I cannot give you Rs 8 lakh just to repay your loan. But I can invest this amount in your company,’ said Piyush.

That he did, and also gave space in his office to One97 so Vijay could be close to both Polar and One97 at the same time. In return, Piyush got a 40 per cent stake in One97.

Piyush sold most of his stake later for Rs 87 crore. That should be enough to make him one of the shrewdest investors in the history of India. But had he held on . . . well . . . One97, with its ownership of the Paytm mobile wallet and an online marketplace, is now valued at billions of dollars. It also has a payments bank licence now.

The high current valuation makes some people question Vijay’s wisdom in giving away 40 per cent for just Rs 8 lakh and some office space. They forget that the value of money depends on the need it serves. Had Piyush’s Rs 8 lakh not come in at the time it did, One97 may have shut down and there would be no Paytm. In a sense, Piyush’s money was Vijay’s angel round of funding.

Later, Polar sold its office and moved. And still later, when Vijay had the money, he bought back the same office.
‘This is the Polar Software building,’ he says, moving his hand in a sweeping gesture.

The circle of life!

Note: Excerpted with permission from Penguin Random House India from “The Tip Of The Iceberg” by Suveen Sinha.

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An ambassador and trained facilitator under Eco Femme (a social enterprise working towards menstrual health in south India), Sanjina is also an active member of the MHM Collective- India and Menstrual Health Alliance- India. She has conducted Menstrual Health sessions in multiple government schools adopted by Rotary District 3240 as part of their WinS project in rural Bengal. She has also delivered training of trainers on SRHR, gender, sexuality and Menstruation for Tomorrow’s Foundation, Vikramshila Education Resource Society, Nirdhan trust and Micro Finance, Tollygunj Women In Need, Paint It Red in Kolkata.

Now as an MH Fellow with YKA, she’s expanding her impressive scope of work further by launching a campaign to facilitate the process of ensuring better menstrual health and SRH services for women residing in correctional homes in West Bengal. The campaign will entail an independent study to take stalk of the present conditions of MHM in correctional homes across the state and use its findings to build public support and political will to take the necessary action.

Saurabh has been associated with YKA as a user and has consistently been writing on the issue MHM and its intersectionality with other issues in the society. Now as an MHM Fellow with YKA, he’s launched the Right to Period campaign, which aims to ensure proper execution of MHM guidelines in Delhi’s schools.

The long-term aim of the campaign is to develop an open culture where menstruation is not treated as a taboo. The campaign also seeks to hold the schools accountable for their responsibilities as an important component in the implementation of MHM policies by making adequate sanitation infrastructure and knowledge of MHM available in school premises.

Read more about his campaign.

Harshita is a psychologist and works to support people with mental health issues, particularly adolescents who are survivors of violence. Associated with the Azadi Foundation in UP, Harshita became an MHM Fellow with YKA, with the aim of promoting better menstrual health.

Her campaign #MeriMarzi aims to promote menstrual health and wellness, hygiene and facilities for female sex workers in UP. She says, “Knowledge about natural body processes is a very basic human right. And for individuals whose occupation is providing sexual services, it becomes even more important.”

Meri Marzi aims to ensure sensitised, non-discriminatory health workers for the needs of female sex workers in the Suraksha Clinics under the UPSACS (Uttar Pradesh State AIDS Control Society) program by creating more dialogues and garnering public support for the cause of sex workers’ menstrual rights. The campaign will also ensure interventions with sex workers to clear misconceptions around overall hygiene management to ensure that results flow both ways.

Read more about her campaign.

MH Fellow Sabna comes with significant experience working with a range of development issues. A co-founder of Project Sakhi Saheli, which aims to combat period poverty and break menstrual taboos, Sabna has, in the past, worked on the issue of menstruation in urban slums of Delhi with women and adolescent girls. She and her team also released MenstraBook, with menstrastories and organised Menstra Tlk in the Delhi School of Social Work to create more conversations on menstruation.

With YKA MHM Fellow Vineet, Sabna launched Menstratalk, a campaign that aims to put an end to period poverty and smash menstrual taboos in society. As a start, the campaign aims to begin conversations on menstrual health with five hundred adolescents and youth in Delhi through offline platforms, and through this community mobilise support to create Period Friendly Institutions out of educational institutes in the city.

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A student from Delhi School of Social work, Vineet is a part of Project Sakhi Saheli, an initiative by the students of Delhi school of Social Work to create awareness on Menstrual Health and combat Period Poverty. Along with MHM Action Fellow Sabna, Vineet launched Menstratalk, a campaign that aims to put an end to period poverty and smash menstrual taboos in society.

As a start, the campaign aims to begin conversations on menstrual health with five hundred adolescents and youth in Delhi through offline platforms, and through this community mobilise support to create Period Friendly Institutions out of educational institutes in the city.

Find out more about the campaign here.

A native of Bhagalpur district – Bihar, Shalini Jha believes in equal rights for all genders and wants to work for a gender-equal and just society. In the past she’s had a year-long association as a community leader with Haiyya: Organise for Action’s Health Over Stigma campaign. She’s pursuing a Master’s in Literature with Ambedkar University, Delhi and as an MHM Fellow with YKA, recently launched ‘Project अल्हड़ (Alharh)’.

She says, “Bihar is ranked the lowest in India’s SDG Index 2019 for India. Hygienic and comfortable menstruation is a basic human right and sustainable development cannot be ensured if menstruators are deprived of their basic rights.” Project अल्हड़ (Alharh) aims to create a robust sensitised community in Bhagalpur to collectively spread awareness, break the taboo, debunk myths and initiate fearless conversations around menstruation. The campaign aims to reach at least 6000 adolescent girls from government and private schools in Baghalpur district in 2020.

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A psychologist and co-founder of a mental health NGO called Customize Cognition, Ritika forayed into the space of menstrual health and hygiene, sexual and reproductive healthcare and rights and gender equality as an MHM Fellow with YKA. She says, “The experience of working on MHM/SRHR and gender equality has been an enriching and eye-opening experience. I have learned what’s beneath the surface of the issue, be it awareness, lack of resources or disregard for trans men, who also menstruate.”

The Transmen-ses campaign aims to tackle the issue of silence and disregard for trans men’s menstruation needs, by mobilising gender sensitive health professionals and gender neutral restrooms in Lucknow.

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A Computer Science engineer by education, Nitisha started her career in the corporate sector, before realising she wanted to work in the development and social justice space. Since then, she has worked with Teach For India and Care India and is from the founding batch of Indian School of Development Management (ISDM), a one of its kind organisation creating leaders for the development sector through its experiential learning post graduate program.

As a Youth Ki Awaaz Menstrual Health Fellow, Nitisha has started Let’s Talk Period, a campaign to mobilise young people to switch to sustainable period products. She says, “80 lakh women in Delhi use non-biodegradable sanitary products, generate 3000 tonnes of menstrual waste, that takes 500-800 years to decompose; which in turn contributes to the health issues of all menstruators, increased burden of waste management on the city and harmful living environment for all citizens.

Let’s Talk Period aims to change this by

Find out more about her campaign here.

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A former Assistant Secretary with the Ministry of Women and Child Development in West Bengal for three months, Lakshmi Bhavya has been championing the cause of menstrual hygiene in her district. By associating herself with the Lalana Campaign, a holistic menstrual hygiene awareness campaign which is conducted by the Anahat NGO, Lakshmi has been slowly breaking taboos when it comes to periods and menstrual hygiene.

A Gender Rights Activist working with the tribal and marginalized communities in india, Srilekha is a PhD scholar working on understanding body and sexuality among tribal girls, to fill the gaps in research around indigenous women and their stories. Srilekha has worked extensively at the grassroots level with community based organisations, through several advocacy initiatives around Gender, Mental Health, Menstrual Hygiene and Sexual and Reproductive Health Rights (SRHR) for the indigenous in Jharkhand, over the last 6 years.

Srilekha has also contributed to sustainable livelihood projects and legal aid programs for survivors of sex trafficking. She has been conducting research based programs on maternal health, mental health, gender based violence, sex and sexuality. Her interest lies in conducting workshops for young people on life skills, feminism, gender and sexuality, trauma, resilience and interpersonal relationships.

A Guwahati-based college student pursuing her Masters in Tata Institute of Social Sciences, Bidisha started the #BleedwithDignity campaign on the technology platform Change.org, demanding that the Government of Assam install
biodegradable sanitary pad vending machines in all government schools across the state. Her petition on Change.org has already gathered support from over 90000 people and continues to grow.

Bidisha was selected in Change.org’s flagship program ‘She Creates Change’ having run successful online advocacy
campaigns, which were widely recognised. Through the #BleedwithDignity campaign; she organised and celebrated World Menstrual Hygiene Day, 2019 in Guwahati, Assam by hosting a wall mural by collaborating with local organisations. The initiative was widely covered by national and local media, and the mural was later inaugurated by the event’s chief guest Commissioner of Guwahati Municipal Corporation (GMC) Debeswar Malakar, IAS.

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