India’s fintech unicorn Razorpay, on Thursday, announced the third employee stock ownership plan (ESOP) buyback worth $10 million (INR 73 crore) for 750 existing and former employees.
According to the company, Sequoia Capital India and GIC, Razorpay’s key investors, will be the buyers involved in this process. All employees who hold vested stocks will be eligible to sell up to 33 percent of their ESOP shares.
Speaking of the same, Harshil Mathur, CEO & Co-founder of Razorpay, said,
“They (employees) turned an unprecedented year into one of the strongest years for Razorpay. And this ESOP Buyback is our little way of giving back to the employees for their contribution and a form of wealth creation for all, as it is important for us to ensure that our employees also grow along with the company,”
Razorpay had announced the first ESOP encashment in November 2018 for its 140 employees, when Tiger Global led the buyback at a 50 percent premium of the company’s valuation. The second sale occurred in November 2019 during which 400 employees were eligible. The company has so far awarded ESOPs to 1000 employees, with current employees holding a majority share, the statement said.
Razorpay entered the unicorn club last year in October after raising $100 million in Series-D funding round at a valuation of $1 billion.