Mohalla Tech, which operates social media app ShareChat and short video app Moj, on Friday announced its maiden ESOP buyback program worth USD 19.1 million (about Rs 140 crore). The company had recently raised over USD 500 million, taking its valuation to USD 2.1 billion.
“Nearly 200 existing and former employees with vested options are eligible to participate in this process,” a statement said. ShareChat has also revised the existing vesting schedule.
The new vesting policy will allow all the qualified employees to vest 25 per cent of ESOPs in the first year, followed by 8.25 per cent every quarter, it added.
In case any employee leaves the organisation, the person gets to keep all the vested options and get the related benefits. Further, the company has revised its ESOP exercise price from Rs 1,551 to Re 1, bringing more benefits to the employees, the statement said.
”This exponential growth and success story wouldn’t have been possible without the relentless commitment of our people. With their immense passion and energy, we have seen the biggest growth trajectory in our history in the last few months,” ShareChat CEO and cofounder Ankush Sachdeva said.
He added that the ESOP buyback is a way of giving back to the employees by helping them in their wealth creation journey. ”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,” he further said.
Mohalla Tech will be the sole buyer in this buyback process. All eligible employees can sell up to 100 per cent of their vested ESOPs at its present stock valuation, the statement said.
ShareChat has over 160 million monthly active users and Moj is a leading player in the short video space.