New Delhi: Fintech start-up PhonePe, India’s leading digital payments platform, on Friday announced a buyback of employee stock options (ESOPs) worth Rs 135 crore.
According to the company’s statement, the buyback offer follows a three-tier model, based on seniority — founders will not be participating in the buyback, top leadership of the firm can sell up to 10 per cent of their vested stocks, and all other current employees can sell up to 25 per cent of their vested stock.
Manmeet Sandhu, head of HR, PhonePe, said, “Last December, we had launched a new plan on PhonePe ESOPs and issued ESOPs to 100 per cent of our employees across levels, functions, and grades. All these employees will complete the one year cliff of their stock vesting next month. So, it is a great time to offer some liquidity to everyone. Around 75 per cent of our current workforce is eligible to participate in the current buyback offer, and for most it is the first time in their careers that they’ve either owned ESOPs or had a chance to liquidate them.”
In December last year, PhonePe rolled out its ESOPs programme where it allotted ESOPs to all its 2,200 employees starting at a minimum of Rs 3.5 lakh, cumulatively worth Rs 1,500 crore.
PhonePe is India’s leading digital payments platform with over 335 million registered users.
Using PhonePe, users can send and receive money, recharge mobile, DTH, pay at stores, make utility payments, and also buy and invest in gold and silver.
The company forayed into financial services in 2017 with the launch of gold providing users with a safe and convenient option to buy 24-karat gold, and recently also launched silver on its platform.
PhonePe has since introduced several mutual funds and insurance products like tax-saving funds, liquid funds, international travel insurance, life insurance, and insurance for the Covid-19 pandemic among others. PhonePe is also accepted at 22+ million merchant outlets across the country.