Razorpay announced its third ESOP (Employee Stock Ownership Plan) Buyback program worth $10Mn (INR 73 Crore) for its 750 employees. All existing and former employees of Razorpay who hold vested stocks will be eligible to sell up to 33% of their vested ESOP shares. Sequoia Capital India and GIC, two of Razorpay’s key investors will be the buyers involved in this development.
ESOP Buybacks in the startup industry have been a source of significant wealth creation for employees but it is not something that companies usually practice as an annual event. Razorpay is one of India’s youngest startups to have facilitated the ESOP Buyback program consequently for the last three years.
The share sale is expected to benefit employees across roles - from team leaders to support executives to administrative staff. Razorpay’s 1350 people team raised their $100Mn Series-D funding in October last year and the ESOP Buyback plan is a reflection of the faith that the company and its employees have instilled in each other.