Winning the new financial era

Chapter 594

Zhang Yida did not answer Singer's question directly, but talked about his own thoughts.

"At present, Ruixiang directly holds 100% of BBPay's shares. I plan to let Ruixiang directly hold 50% of the shares, and the other 50% of the shares will penetrate, allowing Ruixiang's shareholders to directly hold shares in BBPay.

Then Ruixiang will transfer 10% of the equity to you, and the other 10% to existing shareholders or new investors. "

"10% stake."

Singh was talking about Paytm's shareholding structure. He probably also knew that the founder and CEO Sharma held about 15% of the shares, and Ali and Softbank held about 60% of the shares.

For him, as long as he can control the company, 10% of the shares are enough.

It's just that he can't afford the acquisition money, although BBPay has never raised money.

But compared to the $8 billion valuation of competitor Paytm when it received Buffett’s investment at the end of August last year, BBPay must be valued at least $90 billion to $60 billion.

Acquiring 10% of the shares requires US$6 million to US$7 million!
Thinking of this, he understood what Zhang Yida meant by debt.

I want to buy the 10% shares with my own loan.

Thinking of this, Singer suddenly regretted that he should not have coveted the $1 million and sold the company he founded a few years ago.

Seeing that Singer remained silent, Zhang Yida said, "If you can't get the acquisition money, I will discuss with the shareholders and help you acquire the 10% shares in the form of a long-term low-interest loan.

After BBPay goes public in the future, or the valuation rises, you can transfer some of the equity to replace the loan. "

Singer hesitated for a while, and the debt of six to seven billion dollars was not just for fun.

If the company goes under, the debt won't go away.

Or the development of the company has declined, and the valuation has dropped, and it will also be heavily in debt.

If the company's valuation remains unchanged, there will be interest payments on the loan.

Zhang Yida narrowed his eyes slightly and stopped looking at Singer.

This is his carefully chosen plan. While granting Singer a 10% stake, he also puts shackles on the other party.

Where there is pressure, there is motivation. He also wants to see if Singer will be as brave and invincible as his "lion" name.

"What's the interest rate? How long is the loan term?"

Singer thought about it, and asked the conditions clearly before making further decisions.

"The central bank's benchmark interest rate is 6.5%, and the maximum loan is five years. A supplementary agreement can be signed, and the loan can be renewed when it expires."

Singer shook his head, "The interest rate is too high, I think an interest-free loan is more suitable."

Zhang Yida shook his head, "It's not my decision, it's the decision of the company's board of directors, India's economy is developing relatively fast, and inflation is also relatively high.

Interest-free loans are impossible, which undoubtedly violated the interests of other shareholders. "

Singer is also a highly educated person, not a fool, knowing that a group of shareholders of Ruixiang needs to push himself out as this "puppet".

But being a puppet, you can't just give no benefits!
He continued to bargain with Zhang Yida, listing his difficulties and risks.

"Singer, there is risk in doing anything, compared to the 6.5% annual interest rate, the annual growth rate of the payment company's valuation exceeds this figure, and you make money.

Unless you have no confidence in the operation of BBPay, then we can only consider another partner. "

Upon hearing this, Singer's chattering mouth immediately closed.

To recruit professional managers with this condition, others would fight for this right even if they broke their heads.

He doesn't do it, some people do it.

It’s just that he also has some advantages. The predecessor of BBPay was founded by him alone, and he has been in charge of BBPay for more than three years.

It can be said that no one knows this company and the mobile payment market in India better than him.

Thinking of this, Singer told Zhang Yida about his irreplaceable role.

"Mr. Zhang, if you change to another professional manager, it is absolutely impossible for you to love your company like I love my children.

BBPay is currently developing smoothly, and its business indicators are catching up with Paytm.

Hastily changing people will only add unpredictable risks to the development of BBPay.

I am definitely the most suitable candidate, but your conditions really make me a little worried. "

Zhang Yida admitted that what Singer said was very reasonable, but he couldn't do such a thing as interest-free.

Based on the principal of 7 million US dollars, the annual interest is 4550 million US dollars, which is more than 5 million US dollars in 2 years.

This part of the equity is equally shared by all shareholders. Zhang Yida holds nearly 50% of Ruixiang shares. If interest is exempted, it means that he will receive less than 1 million US dollars in interest.

With so much money, he would not be easily persuaded by Singer.

Seeing that Zhang Yida was unmoved, Singer felt a little anxious.

"Well, Mr. Zhang, I can agree to 6.5% loan interest, but I want 20% of the shares."

Singer broke his heart and decided to seek wealth and wealth once.

As Zhang Yida said, as long as the annual valuation increases by more than 6.5%, he will earn the excess.

In five years, the operation is good enough to double the valuation of BBPay by 3-5 times.

At that time, he will directly use the shares to repay the loan, so that he can also keep a considerable amount of equity in his hand.

Zhang Yida was a little hesitant. Giving Singer 20% of the shares could greatly mobilize the other party's work enthusiasm, but the 10% shares that were transferred out were gone.

Ruixiang intends to use this part of the equity to recover the initial investment in BBPay.

Together with the acquisition of the US$1 million, Sharp has invested more than US$10 billion in BBPay.

BBPay, on the other hand, is like a bottomless pit, burning hundreds of millions of dollars every year.

India's per capita GDP is only one-fifth of China's, and there are too many poor people. It is impossible to make money by replicating Yu'ebao, Huabei, and borrowing on a large scale.

The same is true for Paytm, which has not been profitable until now.

Like the Chinese Internet in 2000, it may take three to five years to see the day of profitability.

But Zhang Yida felt that more than 10 billion U.S. dollars of real money had been spent, not to mention that he was wholly-owned before.

If you want to change the shareholding structure now, you must recover part of the investment.

All investments are risky, and only by reducing some of the risks can we survive for a long time.

And all 20% of the shares are lent to Singer in the form of a loan. In case the company goes bankrupt, they will not be able to pay back the other party if they sell it!
They also investigated Singh, who was of the Kshatriya caste, and his family was considered upper class.

But counting the tens of millions of dollars that Singer received from selling the company a few years ago, he and his family cannot afford more than one billion dollars in debt.

If his father was the boss of Reliance Group, Zhang Yida might have made the loan.

Even the elder brother who fires anti-aircraft guns in China knows to find out what the students do at home before lending money. This is called analyzing repayment ability, which belongs to the category of basic risk control.

Obviously, Singh belongs to a higher risk person in Zhang Yida.

Zhang Yida thought for a while, but he was not in a hurry to express his opinion, thinking whether to fool Boss Sun Zhengyi and ask him to complete the loan?

Anyway, Boss Sun still holds shares in Paytm, so he shouldn’t want to see India’s No. [-] and No. [-] e-wallets fighting each other, right?
(End of this chapter)