Credit Card Payment App CRED increases ESOP pool size to $500 million
- ByTejika Bajaj | January 21, 2022
The credit card payment app CRED has recently increased its employee stock ownership plan or ESOP pool size to $500 million thus joining the likes of several growth-stage startups who have followed a similar route.
To implement the changes, CRED has passed a special resolution to increase its ESOP pool by 112,504 stock options to result in a consolidated total of 392,958 stock options. The new ESOP pool has therefore been increased from 10% to 12.5% of the paid up capital.
The development comes soon after the company’s announcement which said that its cumulative ESOP buyback for 2021 will be up to INR 100 crore or $13.3 million. CRED also said that its total ESOP buyback in 2021 was worth approximately INR 145 crore or $19.3 million.
With this move, CRED has joined the likes of top Indian companies in terms of ESOP pool size. According to a report by Longhouse Consulting, Flipkart has created INR 17,000 crore ($2.26 billion) ESOP pool whereas Oyo has created a pool of INR 7,569 crore ($1 billion). Zomato, Paytm and Nykaa have an ESOP pool of INR 5,639 crore ($750 millon), INR 4,571 crore ($610 million) and INR 4,280 crore ($570 million), respectively.
Kunal Shah’s led CRED is one of the most valued fintech startups in India. The company had raised $251 million in its Series E round at a $4.01 billion valuation and according to various sources, it is in talks to raise another round at over $5 billion valuation.
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