Facebook-backed Meesho is the latest to roll out an ESOP buyback plan worth $5 million
- Meesho has rolled out an employee stock ownership plan (ESOP) buyback plan worth $5 million.
- Through the ESOP buyback, Meesho’s employees from the junior level to the senior executive level will be able to vest 100% of their shares.
- Meesho joins startups like Swiggy, Unacademy, Zerodha and Urban Company which have recently rolled out ESOP buyback plans.
Through the ESOP buyback, Meesho’s employees from the junior level to the senior executive level will be able to vest 100% of their shares.
The share buyback plan comes at a time when the company claims that it is growing fast and now, has over 7 million entrepreneurs on its platform— four times the pre-COVID level.
Advertisement“We at Meesho believe our employees to be our assets. The journey for everyone at a young company like ours has been interesting especially by the sheer rate at which we have grown in scale and speed. This venture is driven by a sense of entrepreneurship and responsible ownership on the part of each employee of the company, hence, with this second buyback we want to acknowledge their continued efforts and reward them for their contribution in building Meesho and thereby instill confidence in our existing and potential employees,” said Vidit Aatrey, Founder & CEO, Meesho.
Startups doling out benefits
Employees in a startup when they join are offered certain shares in the company in the form of an Employee Stock Ownership Plan. While the actual benefits of it has been questioned by many, Indian startups are beginning to prove them wrong.
Several startups have launched ESOP buyback plans including the likes of the $3.5 billion Swiggy which had offered an ESOP buyback plan for 40% of its employees who could sell their shares at three times the allotted price. “This program will see participation from the family offices of leading industrial houses in India and a few individuals who are stalwarts in their respective fields. Their interest to join the Swiggy investor community is a testament to their trust in the brand, our vision and growth potential,” said a Swiggy spokesperson.
Recent startups which rolled out ESOP buyback plans
|Swiggy||$7-9 million (reported value)|
|Urban Company||$5 million|
Meanwhile, many others like Sharechat and OYO had also expanded their ESOP pool. In September, Sharechat had announced that it had added $14 million to its ESOP (employee stock ownership plan) pool, taking the total to $35 million. Meanwhile, OYO had allotted ESOPs (employee stock ownership plan) worth ₹130 crore ($18 million) for its furloughed employees.
Google will be probed by India’s Competition Commission for allegedly ‘abusing dominance’ to push its payments app
- US CDC releases blueprint for initial vaccine allocation
- The Oxford COVID-19 vaccine will only cost the Indian government $3 per dose, reveals Adar Poonawalla
- Former Assam CM Tarun Gogoi passes away at 84 due to post-COVID complications
- Fine for not wearing masks in Goa increased to ₹200
- Here's why former RBI governor Rajan and former deputy Acharya believe the plan to allow corporations to own banks is a 'bad idea'