Reinforcing its commitment towards continuous investment in its strong workforce, converged payments solution company Razorpay is to implement its second ESOP buyback plan for its employees.

Sequoia India and Ribbit Capital, two of Razorpay’s key investors, will be the buyers at a premium. All existing and former employees who hold vested stocks will be eligible to sell up to 30 per cent of their vested ESOP shares of the company.

Over 400 employees are eligible to participate. The aim is to motivate the Razorpay team to continue creating value, both for the company and employees.

Razorpay has grown by 500 per cent in the last year and has been witnessing a healthy growth rate of 35 per cent month-on-month. The company expects to grow five times in revenue by the end of the next fiscal year.

The company said, though ESOP buybacks have been part of the employee welfare schemes in larger organisations, the start-up industry, particularly in India, has only recently begun to see these developments, which point to the healthy growth of the start-up ecosystem.

Razorpay’s team raised their Series C funding in June this year. The ESOP buyback plan has been termed a reflection of the faith the company and its employees have instilled in each other.

Encouraging participation

Harshil Mathur, CEO and co-founder, Razorpay, said that the last four-and-a-half years were a fantastic journey. “The ESOP buyback model is a form of wealth creation for all employees. By encouraging all our former and existing team members to participate in this plan, it is our small gesture of giving back to the people who have trusted us.”

The company powers digital payments for over 6,00,000 businesses like IRCTC, Airtel, BookMyShow, Zomato, Swiggy, Yatra and Zerodha, and plans to increase this to one million by 2020.

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