Accel-Backed Dezerv Concludes INR 46 Cr ESOP Buyback

Wealthtech startup Dezerv today (March 19) said that it has completed its Employee Stock Ownership Plan (ESOP) buyback programme, which will facilitate liquidation of vested stock worth INR 46 Cr (around $5.3 Mn) for both existing and current employees.

However, the Accel-backed company did not disclose the number of people to have participated in the programme.

The ESOP liquidity programme will give an opportunity to the startup’s early employees to generate wealth, it said in a statement.

“We remain committed to delivering the highest quality investment experience to India’s wealth creators. A crucial part of ensuring this is the motivation and alignment of the team with our values. This ESOP buyback is one among many such aspects to our culture,” said Dezerv cofounder Sandeep Jethwani,.

The development comes almost a year after Inc42 exclusively reported that the Mumbai-based startup raised $32 Mn led by Premji Invest, along with existing investors Elevation Capital, Z47 and Accel Partners. As per Inc42’s analysis, at the time, the startup was valued at $205 Mn.

Founded in 2021 by Jethwani, Sahil Contractor and Vaibhav Porwal, Dezerv is a wealth management platform which provides curated investment solutions to senior working professionals and high-net-worth individuals. It claims to manage asset worth over INR 6,000 Cr since its inception.

ESOP buybacks have  been a great tool for startups for a long time to reward their existing and former employees in the success of the company. As per Inc42, last year at least 23 startups participated in ESOP liquidation programmes and more than 3,000 employees working in the Indian startup ecosystem cumulatively generated more than INR 1,448 Cr in wealth.

Listed foodtech Swiggy and IPO-bound Urban Company were the biggest wealth generators for their employees with ESOP liquidity programmes valued at $65 Mn and $24 Mn respectively.

Healthtech startup Even Healthcare also announced the completion of its first ever ESOP buyback programme valued at $500 K last week.

On the financial front, the Accel-backed startup reported an operating revenue of INR 26.25 Cr in the financial year 2023-24 (FY24), a whooping 157% surge from INR 10.20 Cr in the previous fiscal year. However, the startup ended in the red in FY24 with its consolidated net loss rising 95% to INR 74.53 Cr from INR 38.20 Cr in FY23.