Neobanking platform Niyo rolls out second ESOP buyback plan

Consumer neobanking platform Niyo has announced its second employee stock ownership plan (ESOP) for an undisclosed amount which will be extended to a majority of its 500 employees who have completed two years, the startup said on September 15.

The ESOP buyback comes after two consecutive fundraises by the company this year. Niyo raised $30 million from private equity firm Multiples Alternate Asset Management in July and $100 million in its Series C round led by US-headquartered Accel and London-headquartered Lightrock India in February this year.

"The buyback announcement comes at a time of tough market conditions and demonstrates Niyo’s confidence in its business growth and also reflects its commitment to consistent wealth creation for its employees," the company said in a statement.

Earlier in April 2022, Niyo granted about Rs 40 crore of ESOP value to its employees in its annual appraisal.

Valued at $350 million, Niyo was founded in 2015 by Vinay Bagri and Virender Bisht. The company offers digital savings accounts, wealth management services including mutual fund investments, prepaid cards and other services in partnership with banks.

The company also announced its foray into credit cards and insurance. The startup's partner banks include SBM Bank, Equitas Small Finance Bank, DCB Bank, Yes Bank and ICICI Bank.

Vinay Bagri, Co-founder & CEO, Niyo said, "We have doubled our business volume over the last one year and have created a formidable brand. The growth is a testimony of the hard work demonstrated by our team members."

"We have always been an employee-centric company that believes in giving a sense of ownership for our employees. The second ESOP buyback plan is our humble effort to convey our gratitude to the team that has stayed with us," he added.