HR technology software provider Darwinbox has concluded an Employee Stock Ownership Plan (ESOP) buyback worth Rs 86 crore, marking its third such transaction in four years. More than 350 employees across the company's 11 global offices participated in this round, the firm said in a statement on June 24.
The buyback comes at a time when ESOP liquidity events are becoming more common among growth-stage companies as a way to attract and retain talent in an increasingly competitive job market.
"Even as we invest deeply in innovation and global growth, we remain equally committed to creating meaningful outcomes for our people," cofounder Jayant Paleti said.
Cofounder Chaitanya Peddi added that the company is focused on ensuring that employees grow with the organisation not only in impact but also through wealth creation.
Founded in 2015, Darwinbox offers cloud-based human capital management (HCM) software and claims to serve over 4 million employees across more than 1,000 enterprises globally. Its clients include Starbucks, McDonald's, Airtel, AXA, and Vedanta.
Earlier this year, Darwinbox raised $140 million from global private equity investors KKR and Partners Group, joining its cap table that already includes Microsoft, Salesforce Ventures, and Peak XV. The capital was aimed at strengthening its technology stack and supporting its global expansion plans.
In recent months, the company has rolled out several AI-driven products, including an MCP (Model Context Protocol) Server, which allows AI agents to securely interact with HR data and workflows.
Darwinbox also launched Darwinbox Sense, a generative AI engine that powers more than 40 embedded capabilities. Additionally, it expanded its multi-country payroll solution to 10 new geographies over the past year.
The buyback takes place amid a growing trend of ESOP liquidity events among growth-stage companies, which are using such programs to attract and retain talent in a highly competitive hiring landscape.
In December of 2024, YCombinator-backed fintech unicorn Razorpay has announced the allocation of employee stock ownership plans (ESOPs) worth Rs 1 lakh to all its current employees.
Industry experts say tech startups are likely to increase payouts through employee stock ownership plans (ESOPs) this year, driven by improving funding conditions, stronger public markets, and a rise in secondary share sales.
In January, Swiggy allotted 2.61 crore shares worth Rs 1,154 crore for its ESOP scheme. A week earlier, Paytm-parent One97 Communications expanded its ESOP plan by allotting more than 2 lakh stock options worth Rs 18.27 crore.
Also Read: Startup employees to earn more via ESOPs as companies increase pool
Beauty and personal care brand Mamaearth's parent Honasa Consumer allotted 45,663 stock options, valued at Rs 1.12 crore, to eligible employees.
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