The parent company ShareChat short video application Moj , Mohalla Tech, will buy back employee stocks worth $19.1 million, on Friday company announced
This began after few months it raised $502 million at a valuation of $2.1 billion, thereby making an entry into India’s startup unicorn club.
The Bengaluru-based startup stated that about 200 existing and former workers with vested options will be eligible to engage in this process. They can sell upto 100% of their vested shares at its current stock valuation.
ShareChat also revised its employee stock ownership plan (ESOP) exercise price from Rs 1,551 to Re 1 and tweaked its vesting policy. As per the new policy, 25% of ESOPs will vest in the first year, followed by 8.25% every quarter. Previously, the organisation had an annual vesting schedule. In case any employee leaves the company, will be able to keep all the vested options along with access to related benefits.
“We are presently witnessing an exciting growth journey and following an ambitious plan. Therefore, we have aligned our ESOP policy accordingly to reward our people who will be instrumental in paving the way for the next level of growth,” cofounder Ankush Sachdeva stated. “This ESOP buyback is our way of giving back to our employees by helping them in their wealth creation journey,”
Over the previous year or so, many Indian startups like PhonePe, Udaan, Cred, Paytm, Acko, Licious, and ShareChat have awarded their employees with ESOP buybacks, that lead to wealth creation at a time when the sector has seen a significant uptick due to the pandemic wave.