SUMMARY
Meesho said this is the largest such ESOP buyback programme undertaken by it and would benefit past as well as current employees
Prior to this, the ecommerce unicorn bought back shares worth $5.5 Mn in October 2021, $5 Mn in November 2020, and $1 Mn in February 2020
Last year, the startup claimed that it turned profitable in the second quarter of FY24
Ecommerce unicorn meesho
announced the launch of an INR 200 Cr (about $25 Mn) employee stock ownership plan (ESOP) buyback programme.
It is the largest such ESOP buyback programme undertaken by Meesho and would benefit around 1,700 past and current employees, the ecommerce startup said in a statement on Wednesday (March 13).
Eligible current and former employees, from junior-level executives to senior leadership, can participate in this program, it added.
Prior to this, Meesho conducted three buyback programmes for its employees. It bought back shares worth $5.5 Mn in October 2021, $5 Mn in November 2020, and $1 Mn in February 2020.
Commenting on the launch of the ESOP buyback programme, Meesho CHRO Ashish Kumar Singh said, “It underscores our commitment to rewarding our teams, and we are pleased that despite prevailing macroeconomic conditions, we persist in providing opportunities for wealth creation and nurture a culture of growth within the organisation.”
Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho claims to have over 15 lakh sellers on its ecommerce platform from across India. The startup also claims to have more than 140 Mn annual transacting users.
The startup, which counts the likes of DST Partners, Elevation Capital, Facebook, and Prosus among its investors, said the net loss of its parent entity Fashnear Technologies declined 48% to INR 1,675 Cr in FY23 from INR 3,248 Cr in the previous fiscal year.
In December last year, the startup also claimed to have turned profitable in the second quarter of FY24.
Last month, Meesho also launched its tech platform Valmo to fill the gaps in the supply chain network in the country by enabling micro entrepreneurs to deliver orders.
The latest development comes at a time when quite a few startups have announced their ESOP buyback programmes this year despite the ongoing funding winter.
Last week, Bengaluru-based community and security management startup MyGate announced an ESOP buyback programme for 51 employees. Prior to that, edtech SaaS unicorn Classplus launched an ESOP buyback programme for over 150 employees.
