Razorpay Celebrates 10th Anniversary with INR 1 Lakh ESOPs for All Employees
In a major move to celebrate its 10th anniversary, Razorpay, the Bengaluru-based fintech unicorn backed by Peak XV Partners, has announced the allocation of employee stock options (ESOPs) worth INR 1 Lakh to each of its current employees. This generous initiative, which affects over 3,000 employees across various functions and levels, marks an important milestone for the company and underscores its commitment to rewarding its dedicated workforce.
A Unique ESOP Initiative
Razorpay’s decision to allocate fresh ESOPs to all its employees is an uncommon step in the corporate world. The company has ensured that all its employees, regardless of their role or level within the organization, benefit from this scheme. For many employees, this marks their first-ever ESOP allocation, a move that highlights Razorpay’s employee-centric approach.
Typically, ESOPs are awarded based on seniority or role, with leadership teams or long-tenured employees often receiving the bulk of such options. However, Razorpay has broken this traditional mold by distributing ESOPs across the board, creating a sense of ownership and inclusivity within its vast workforce. The company’s headcount has more than doubled in recent years, and the move aims to make each employee feel invested in the company’s long-term success.
In a statement, Razorpay explained, “It is uncommon for companies to undertake such initiatives on a large scale, particularly by uniformly allocating fresh ESOPs to all current employees across all levels. For many employees, this marks their first-ever ESOP allocation.”
This initiative also comes at a time when the fintech sector is experiencing rapid growth and transformation. Razorpay’s decision to reward employees at all levels highlights its commitment to its core values of innovation, employee well-being, and long-term growth.
ESOP Buyback Programs
This ESOP allocation is part of Razorpay’s broader strategy to engage and retain talent through financial incentives. The company has already launched two major ESOP buyback programs in the past. The first ESOP buyback program took place in 2018, when 140 employees liquidated their vested shares. This buyback allowed employees to benefit financially from the success of the company and served as an important retention tool.
The second buyback occurred in 2022, when Razorpay launched a $75 million buyback initiative. This program benefited 650 current and former employees, giving them an opportunity to cash out their vested shares. These buyback programs have been widely appreciated, as they provide employees with liquidity, allowing them to realize the financial benefits of their stock options while remaining part of the company.
Razorpay’s continued focus on ESOPs and buyback schemes reflects its effort to create an ecosystem where employees not only contribute to the company’s growth but also share in its financial success. By consistently investing in their people, Razorpay aims to strengthen employee morale, foster loyalty, and retain top talent in an increasingly competitive industry.
Looking Ahead: Razorpay’s Future Growth
As Razorpay celebrates its 10th anniversary, the company’s future looks bright. With its commitment to offering competitive financial incentives, a supportive work culture, and a diverse array of opportunities for growth, Razorpay is positioned to remain one of India’s most successful and innovative fintech companies. The allocation of ESOPs serves as a testament to the company’s belief that employee satisfaction and ownership are integral to driving its success.
For employees, this initiative is not just a financial benefit; it symbolizes their direct involvement in the company’s journey and the value they bring to its success. As Razorpay enters the next decade, the move to reward employees with fresh ESOPs is a statement of the company’s dedication to nurturing its talent and ensuring that everyone shares in the success they collectively create.
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