Fintech start-up PhonePe to buy back ESOPs worth Rs 135 cr from employees
Fintech start-up PhonePe on Friday said it would buy back Rs 135 crore worth of employee stock options (ESOPs).
The buyback offer follows a three tier model, based on seniority: founders will not be participating in the buyback, top leadership can sell upto 10 per cent of their vested stock and all other current employees can sell up to 25 per cent of their vested stock.
Manmeet Sandhu, head of HR at PhonePe, said: “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.”
“Almost 75 per cent of our current workforce is eligible to participate in the current buyback offer, and for most it’s the first time in their careers that they’ve either owned ESOPs or had a chance to liquidate them.”
In December last year, PhonePe launched a program to allot ESOPs to all its 2,200 employees starting at a minimum of Rs 3.5 lakh, cumulatively worth Rs 1,500 crore.
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