E-commerce firm Meesho announced an employee stock option (ESOP) buyback programme worth ₹200 crore.

The buyback programme, its largest to date, would be open to both current and former employees, i.e., 1,700 employees, the firm said. Eligible current and ex-employees across the spectrum, from junior-level executives to senior leadership, can voluntarily participate in this programme, the firm added.

This is the fourth buyback by Meesho, with the size increasing each year. The company bought back shares worth $1 million in February 2020, $5 million in November 2020 and $5.5 million in October 2021.

“At Meesho, our employees are the driving force behind our success and we’re thrilled to announce our biggest ESOP buyback program undertaken till date. It underscores our commitment to rewarding our teams, and we are pleased that despite prevailing macroeconomic conditions, we persist in providing opportunities for wealth creation and nurture a culture of growth within the organisation,” said Ashish Kumar Singh, CHRO at Meesho.

The announcement comes months after Meesho turned profitable in July 2023. While its profit after tax (PAT) has been in the single digits, the company says it has been profitable since then and is cash flow positive.

Meesho’s revenue from operations grew to ₹5,735 crore in FY23 from ₹3,232 crore in FY22. Its losses halved from ₹3,251 crore in FY22 to ₹1,675 crore in FY23. To be sure, Meesho is yet to file its final results with the Ministry of Corporate.

Related Topics
comment COMMENT NOW