🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Rapido announces first ESOP liquidity program

EntrackrEntrackr · 5m ago
Rapido announces first ESOP liquidity program
Medial

Rapido announces first ESOP liquidity program Ride-hailing firm Rapido has announced its first-ever Employee Stock Ownership Plan (ESOP) liquidation program for its current and former employees. Through this initiative, employees are eligible to sell a portion of their vested ESOP units immediately. Founded in 2015 by Aravind Sanka, Pavan Guntupalli, and SR Rishikesh, Rapido operates on a peer-to-peer (P2P) model, connecting customers in need of a quick, affordable ride with independent two-wheeler riders, or captains. In September last year, Rapido achieved unicorn status after securing $200 million in a Series E funding round led by WestBridge Capital. It has raised more than $500 million to date. Rapido’s revenue from operations grew 46.3% to Rs 648 crore in FY24 from Rs 443 crore in FY23. The firm also reduced its losses by 45% to Rs 371 crore. According to Rapido, its streamlined cost structure contributed to a reduced quarterly loss of Rs 17 crore in Q2 FY25 from Rs 74 crore in Q2 FY24.

3

Related News

Flipkart announces new ESOP liquidity worth $50 Mn

EntrackrEntrackr · 6d ago
Flipkart announces new ESOP liquidity worth $50 Mn
Medial

Flipkart announces new ESOP liquidity worth $50 Mn This announcement follows Flipkart’s record $700 million payout to employees in 2023, one of the largest ESOP buyback events in Indian startup history. Flipkart has announced a fresh ESOP (Employee Stock Option Plan) liquidity opportunity for its employees, according to an internal note from the company’s chief executive officer Kalyan Krishnamurthy. As per the note, eligible employees will be allowed to liquidate up to 5% of their vested ESOPs as of July 5, 2025, at a buyback price of $174.32 per option. Payouts will be made in August 2025 under the Flipkart Stock Option Plan 2012. An ET report estimates the size of the ESOP buyback at $50 million, with 7,000 to 7,500 employees expected to benefit from the liquidity program. Flipkart is currently valued at around $36 billion. Krishnamurthy also added that if key performance goals are met by the end of 2025, another 5% liquidity window could open in early 2026. A Flipkart spokesperson confirmed the development to Entrackr. This announcement follows Flipkart’s record $700 million payout to employees in 2023, one of the largest ESOP buyback events in Indian startup history. Media reports indicate the firm plans to launch its IPO with a valuation of $60-$70 billion. The company’s board has already approved the process to shift its holding structure from Singapore to India. In 2025, a clutch of startups including Darwinbox, Rapido, Univest, Deserve, and Even Healthcare have implemented ESOP buyback, liquidity, and payout programs worth around $67 million. In 2024, more than 20 startups implemented $200 million. According to startup data intelligence platform TheKredible, the ESOP buyback or liquidity amount stood at $802 million in 2023, $440 million in 2021, and $200 million in 2022.

XYXX announces ESOP buyback program

EntrackrEntrackr · 1y ago
XYXX announces ESOP buyback program
Medial

Men-focused premium innerwear and lifestyle brand XYXX has announced its first Employee Stock Ownership Plan (ESOP) buyback. XYXX’s ESOP programme was introduced 4 years ago, and employees who have completed their tenure are eligible for the buyback. According to the firm, the eligible employees are allowed to liquidate at a 6X premium on the allotted price with zero strike price. XYXX’s ESOP buyback programme currently includes employees spanning from senior managers to heads of departments as well as executive leadership. The buyback comes within a year of XYXX’s $13.5 million Series C round led by Amazon Smbhav Venture Fund. XYXX claims to have pan-India presence with over 22,000 touchpoints through top Multi Brand Outlets (MBOs), a strong modern trade presence with Shoppers Stop, and Reliance Trends, amongst others as well as Exclusive Brand Outlets (EBOs) in multiple key cities. Its products are available on website (xyxxcrew.com) and available on e-commerce marketplaces including Amazon, Flipkart, Myntra and Ajio. On Monday, audio series platform Pocket FM announced its first ESOP buyback worth $8.3 million. As per data compiled by TheKredible, the total EOSP buyback/payout/liquidity stood at nearly $802 million in 2023. In 2021 and 2022, the buyback amount was recorded at $440 and $200 million respectively. In 2024, MyGate, Classplus and Meesho also completed their ESOP buyback scheme.

Meesho announces its largest ESOP buyback worth Rs 200 Cr

EntrackrEntrackr · 1y ago
Meesho announces its largest ESOP buyback worth Rs 200 Cr
Medial

Meesho has announced the initiation of an employee stock ownership plan (ESOP) buyback program of Rs 200 crore (approximately $25 million), making it the company’s largest ESOP buyback pool to date. This marks the fourth buyback at the horizontal e-commerce unicorn. The company bought back shares worth $1 million in February 2020, $5 million in November 2020 and $5.5 million in October 2021. The new buyback will benefit around 1,700 past as well as present employees across junior-level executives to senior leadership. Meesho provides small businesses, which includes SMBs, MSMEs and individual entrepreneurs, access to millions of customers, selection from over 30 categories, pan-India logistics, payment services and customer support capabilities. The Vidit Aatrey-led company recently announced the launch of Valmo, a full fledged logistics marketplace that allows the network of micro-entrepreneurs to become Meesho logistics partners. In July 2023, Meesho claimed that it was the first horizontal Indian e-commerce company to turn profitable. Since announcing profitability in July 2023, the company continues to remain profitable and cash flow positive. The company also cut its losses in FY23 by 48% but its revenue spiked 77% year-on-year to Rs 5,735 crore in the last fiscal year. Recently, community management app MyGate rolled out employee stock buyback program for more than 50 employees. As per data compiled by TheKredible, the total EOSP buyback/payout/liquidity stood at nearly $802 million in 2023. In 2021 and 2022, the buyback amount was recorded at $440 and $200 million respectively.

Indian startup employees cash out $1.7 Bn through ESOPs since 2020

EntrackrEntrackr · 9m ago
Indian startup employees cash out $1.7 Bn through ESOPs since 2020
Medial

The Indian startup ecosystem has witnessed an exponential rise in employee stock ownership plan (ESOP) buybacks since 2020. According to data compiled by TheKredible, over 100 startups have implemented ESOP buyback, liquidity, and payout programs worth around $1.7 billion in the past five years, starting from January 2020. This trend reflects startups’ commitment to rewarding talent, providing employees with financial benefits, and boosting workplace morale. As reported in our previous edition, 80% of the total buybacks were conducted by 20% of the startups. Year-on-year data highlights the evolution of ESOP buybacks. In 2020, only 11 startups participated, totaling a modest $50 million. However, the trend accelerated rapidly, with 40 startups completing buybacks worth $440 million in 2021. This was followed by 26 startups with $200 million in buybacks in 2022. The upward trend continued in 2023, with 14 startups generating an impressive $802 million through buybacks or liquidity events. As of October 8, 2024, as many as 17 startups have contributed $188 million to this growing total. Among the leading players in ESOP buybacks, Flipkart, Razorpay, Swiggy, Whatfix, and BrowserStack stand out as the top five. Sectors most actively participating include e-commerce, fintech, SaaS, edtech, and logistics. Notably, 28 unicorns have joined this trend, reflecting a commitment to their employees’ financial well-being even among highly successful startups. [2024 vs 2023] The IPO-bound foodtech firm Swiggy led the 2024 ESOP liquidity chart with $65 million. It was closely followed by SaaS company Whatfix, which recently announced $58 million in ESOP liquidity for employees and investors. Urban Company and Meesho ranked next, with $24.4 million and $24 million, marking their largest ESOP buybacks to date. Titan Capital co-founders Kunal Bahl and Rohit Bansal saw strong returns on their investment in Urban Company. Other notable buybacks include Pocket FM, Purplle, and Dehaat, while nearly 50% of startups did not disclose buyback amounts. Check the complete data at TheKredible. In 2023, Flipkart accounted for $700 million in ESOP liquidity as compensation for value lost in the PhonePe spin-off, while the remaining startups totaled $102 million in buybacks. [2022 vs 2021] In 2022, fintech unicorn Razorpay led as the largest wealth creator with a $75 million ESOP liquidation program. Similarly, Swiggy, after reaching decacorn status, announced a $23 million ESOP program. The year 2021 marked a high for buyback events, with companies like Flipkart, Swiggy, PhonePe, Udaan, and others announcing ESOP liquidity totaling over $440 million. However, recent budget proposals may impact ESOPs, as the Union Budget suggests treating share buybacks as dividend income starting October 1, potentially affecting employee retention strategies. [Conclusion] One thing that is quite clear is that ESOPs are a well accepted and integral part of startup compensation and reward plans today. Employees are no longer averse to or unfamiliar with the concept, and enough examples and data is available out there for them to make an informed decision on the fairness, and relevance of their firms ESOP plans, if any. Boosting it further is the recent string of IPOs, besides upcoming ones that will provide the kind of liquidity events few imagined even in 2022. If anything, we believe firms will be scrutinised more closely by markets and the media on the size and application of their ESOP plans going forward. ESOPs can look very disproportionate in retrospect at times, and firms will have to think through generous grants and the rules governing them for senior and board level grants especially.

Download the medial app to read full posts, comements and news.