Meesho has launched its largest-ever Employee Stock Ownership Plan (ESOP) buyback initiative, valued at Rs 200 crore (approximately $25 million). This initiative represents the company’s most substantial ESOP buyback to date and is the fourth of its kind for the e-commerce powerhouse. Previous buybacks occurred in February 2020 ($1 million), November 2020 ($5 million), and October 2021 ($5.5 million).
This latest buyback is set to benefit around 1,700 employees, both current and former, ranging from junior-level executives to the senior leadership team.
Meesho serves as a platform for small businesses, including SMBs, MSMEs, and individual entrepreneurs, offering access to millions of customers, a wide selection from over 30 categories, nationwide logistics, payment processing, and customer support.
Under the leadership of Vidit Aatrey, Meesho recently introduced Valmo, a comprehensive logistics marketplace designed to enable a network of micro-entrepreneurs to partner with Meesho for logistics services.
In July 2023, Meesho announced it had become the first horizontal e-commerce company in India to achieve profitability. Since then, it has maintained its profitability and cash flow positivity. The company also reduced its losses by 48% in FY23, while its revenue surged by 77% year-over-year to Rs 5,735 crore in the last fiscal year.
In related news, the community management application MyGate executed an ESOP buyback program benefiting over 50 employees. According to data from TheKredible, total ESOP buybacks/payouts/liquidity events amounted to nearly $802 million in 2023, with the figures for 2021 and 2022 standing at $440 million and $200 million, respectively.
