Meesho undertakes ESOP buyback worth $5 million

By: |
November 10, 2020 1:34 PM

The total worth of the latest ESOP re-purchasing programme is expected to be approximately USD 5 million, it added.

ESOPs in India and globally have been used by businesses to encourage employees to buy shares and own a part of the company.(Representational image)

Social commerce platform Meesho on Tuesday said it has implemented an employee stock ownership plan (ESOP) buyback worth about USD 5 million (about Rs 37 crore). This is the second buyback by the company, where the eligible employees were entitled to exercise their option to sell up to 100 per cent of their vested ESOP shares, a statement said.

The total worth of the latest ESOP re-purchasing programme is expected to be approximately USD 5 million, it added. Employees ranging from junior most executives to senior leadership will take part in the exercise, it said. “We at Meesho believe our employees to be our assets. The journey for everyone at a young company like ours has been interesting, especially by the sheer rate at which we have grown in scale and speed,” Meesho founder and CEO Vidit Aatrey said.

The Bengaluru-based company said social commerce is becoming a strong force in taking e-commerce to the next billion customers, and in the ‘new normal’, Indian hinterlands will witness a shift in the consumer market. This will be instrumental in reshaping the future of retail and consumer industry, it added.

The Facebook-backed company said its business has grown about 4X compared to pre-COVID levels and now has about 7 million entrepreneurs on the platform. “…with this second buyback, we want to acknowledge their (employees’) continued efforts and reward them for their contribution in building Meesho and thereby, instil confidence in our existing and potential employees. This only strengthens our purpose to work hard and create entrepreneurs across the country,” Aatrey said.

Founded by IIT-Delhi graduates Vidit Aatrey and Sanjeev Barnwal in December 2015, Meesho helps individuals to start an online business without capital. Meesho has enabled entrepreneurs across India to sell on WhatsApp, Facebook, and Instagram by providing them products, logistics and payment tools.

Seventy per cent of these entrepreneurs are homemakers, career women on breaks and students. Meesho’s investors include Facebook, Prosus (formerly known as Nasper) Naspers, Elevation Capital (previously SAIF partners), Sequoia, Shunwei Capital, DST Partners, RPS Ventures, Venture Highway, Y Combinator and former Vodafone CEO Arun Sarin.

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