Razorpay's Generous ESOP Initiative

In a significant move, fintech unicorn Razorpay announced on Monday that it is extending employee stock options (ESOP) worth Rs 1 lakh to each of its over 3,000 staffers. This marks the first time Razorpay has offered ESOPs of this magnitude, reflecting the company's commitment to an employee-first ethos and honoring the dedication of its team.

Previously, ESOPs were granted only to select employees based on performance. However, this new initiative underscores Razorpay's recognition of the collective effort and hard work of all its employees.

Industry Trends in ESOPs

Razorpay joins a growing list of new-age companies that have recently granted ESOPs to employees, including logistics services provider Delhivery, food delivery firm Zomato, payments services provider Paytm, and travel tech firm Ixigo.

In recent months, these companies have approved significant ESOP grants, highlighting a trend towards greater employee recognition and incentive through equity participation.

Razorpay's ESOP Buybacks

The company's previous ESOP grantees have benefited from several rounds of buybacks. Razorpay initiated its first ESOP buyback in 2018, which allowed 140 employees to liquidate their vested shares. Subsequent buybacks in 2019, 2021, and 2022 benefited 400, 750, and 650 employees respectively, with the 2022 buyback valued at $75 million.

With an annualized total payment volume (TPV) of $180 billion, Razorpay currently powers payments for 80 of India's 100 unicorns, solidifying its position as a key player in the fintech space.