Flipkart owned PhonePe announces ESOP Buyback worth Rs. 135 crore
- ByTejika Bajaj | November 20, 2021
The Flipkart owned PhonePe announced a buyback of ESOP (Employee Stock Option Plan) worth Rs. 135 crore.
The buyback follows a three-tier model which is based upon seniority of the employees.
While the top leadership can sell up to only 10 percent of their vested stock, the employees can sell up to 25 percent of their vested stock in this buyback. The company’s founder however would not be participating in the buyback scheme.
The fintech unicorn currently employs more than 2,500 employees. The inside source states that about 75% of the workforce would be eligible for the buyback offer and for some of the workforce it would be their first time holding and liquidating ESOPs.
Commenting about the buyback plan, the Head HR of PhonePe, Manmeet Sandhu stated, “Last December, we launched a new PhonePe ESOPs plan and issued ESOPs to 100 per cent of our employees across levels, functions and grades. All these employees will complete the one year cliff of their stock vesting next month, so it’s a great time to offer some liquidity to everyone.”
Founded in 2015 by Sameer Nigam, Rahul Chari and Burzin Engineer, PhonePe is a digital payment and financial services company. The users of PhonePe can transfer money, recharge utility bills, invest in gold, silver or mutual funds and pay at shops. The startup claims to have 335 million registered users and 22 million merchant outlets across India.
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