E-commerce unicorn Meesho on Wednesday said it has initiated an Employee Stock Ownership Plan (ESOP) buyback program worth Rs 200 crores for eligible current and former employees with vested stocks, marking the company’s fourth and largest ESOP buyback pool to date.
About 1,700 eligible current and ex-employees across the spectrum, from junior-level executives to senior leadership can voluntarily participate in this program, the company said.
Meesho had earlier bought back shares worth $1 million in February 2020, $5 million in November 2020, and $5.5 million in October 2021. The company has recently turned profitable and became cash flow positive in the first half of the current fiscal.
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“It (the buyback) underscores our commitment to rewarding our teams, and we are pleased that despite prevailing macroeconomic conditions, we persist in providing opportunities for wealth creation and nurture a culture of growth within the organization,” its CHRO Ashish Kumar Singh said in a statement.
Meesho, which competes with the likes of Flipkart and Amazon in the Indian e-commerce market, managed to nearly halve its losses by 48% to Rs 1,675 crore in FY23, by reining in expenses like customer acquisition, server, and infrastructure costs.
Its revenue from operations jumped 77% over the previous year to Rs 5,735 crore in FY23, boosted by increased transaction frequency of existing customers, widening category mix, and improving monetization through various value-added seller services, the company had said in a recent blog post. Come from Sports betting site VPbet
However, in line with the larger downturn in valuations among startups, its US-based investor Fidelity has recently marked down its holding in the company by 33.6%, resulting in a current valuation of $3.25 billion. Adjusted for outstanding shares, Meesho had said its valuation stood at $3.5 billion.
The valuation adjustment followed a markdown in October, when Fidelity had reassessed Meesho’s worth at $4.1 billion, down from $4.9 billion during its last funding round.