The ESOP liquidity initiative for the Indian workforce was announced by the US-based digital lending platform Biz2Credit on Tuesday, July 26.
The programme will help more than 500 employees in the nation, according to the corporation.
Biz2Credit, Founded in 2007 by brothers Rohit and Ramit Arora, provides consumer loans, working capital, and other business funding solutions for startups in addition to loans for small and medium-sized businesses operating online.
The startup’s Series B funding round, which was organised by WestBridge Capital, saw the most recent infusion of $52 Mn. Crunchbase reports that $387 Mn has already been invested in Biz2Credit by investors.
The news comes months after the Westbridge Capital-backed startup reportedly cut its pre-IPO fundraising goal by more than half to $150-200 Mn from the $500 Mn-$1 Bn threshold it had set in October.
Rohit Arora, Co-founder and CEO of Biz2Credit, said, “Our ESOP plan is an attempt to reward our employees’ commitment and for the role they play in helping the organisation achieve its long-term objectives. The ESOP plan reflects our company’s priorities and balances key financial measures with individual performance and tenure considerations.”
The ESOP programme was launched at a time when other Indian businesses had already signed on board. Swiggy, a startup in food delivery, recently launched an ESOP monetisation plan under which qualified employees will be eligible to access liquidity of up to $23 million.
Before that, SaaS startup Amagi had announced an ESOP plan and a stock appreciation rights plan with a combined value of more than INR 195 Cr.
Additionally, in 2022, the cryptocurrency exchange CoinSwitch and the used car marketplace Cars24 both implemented various ESOP buyback programmes.
According to a report , Indian startup employees are estimated to have cash in more than $159 Mn through the monetisation programmes in 2022 so far.