Social commerce platform Meesho has announced a $5.5M an employee stock ownership plan (ESOP) liquidity program for all the eligible employees. Last year, the company implemented its second buyback worth about USD $5 million (about Rs 37 crore).
Vidit Aatrey, founder and CEO, Meesho, said, “We continue to see meteoric progress not only as a business but also in our efforts to democratize internet commerce for everyone. Our employees have been at the forefront of driving this momentum, and we want to give them ample opportunities to celebrate and grow with us. As we hire across the board and scale our tech and product talent by 2.5X, ESOPs will give employees high ownership, while providing more opportunities for wealth creation.”
The company in its press statement said that over the last six months, the company has seen 2.8X growth in monthly transacting users and a 2.5X rise in monthly orders. The company now aims to reach 100 million transacting users by December 2022.
Last month, Meesho raised a $570 million Series F from Fidelity Management & Research Company, B Capital Group, and other new and existing partners like Prosus Ventures, SoftBank Vision Fund 2 and Facebook, at a valuation of $4.9 billion.Over the last one year, companies like Udaan, Unacademy, ShareChat, Razorpay, CRED, MPL, Licious, Classplus, HealthifyMe also implemented its ESOP plans. ESOP buybacks have become quite common among Indian startups. Creating a good ESOP policy helps in attracting and retaining good talent as it allows employees to create wealth for themselves. ESOP buybacks are generally offered during hiring, appraisal or a reward program.