Fintech unicorn Razorpay has announced its fourth and largest employee stock ownership plan (ESOP) sale for its 650 existing and former employees as part of a $75 million transaction, the firm said in a statement on Tuesday.
The purchase will be led by Lightspeed Venture Partners along with participation from Moore Strategic Ventures who will subsequently join the company’s cap table.
Razorpay is one of India’s youngest startups to have facilitated the ESOP sale consecutively for the last three years. Last year, the sale was worth $10 million.
“This year, the company looks to benefit employees across roles – be it software engineers, product managers, customer experience agents, sales, and administrative staff. Current and former employees, as young as 22 who hold vested stocks of the company, will be eligible to sell up to 30 percent of their vested ESOP shares,” the company said.
According to the company, its employees are quintessential to the growth of the business and ESOP sales are one of the many tangible ways in which Razorpay extends its gratitude to its employees.
Razorpay grew over 300 percent last year and plans to achieve $90 billion TPV (Total Payment Volume) by the end of 2022, the fintech’s CEO and co-founder Harshil Mathur said. “These ESOPs are a way to give back to our Razors and a small effort in making a difference in their lives.”
To date, the company has awarded ESOPs to 1,940 existing and former employees across levels.
The fintech firm conducted its first ESOP sale in November 2018, making it one of the very few early-stage startups to conduct a liquidity event for its 140 employees then. The second and third ESOP sales were conducted in November 2019 and March 2021, during which 400 and 750 employees, respectively, were eligible.
In December 2021, Razorpay became the most valued fintech company in India, raising $375 million as part of its Series F funding. This year, Razorpay forayed into the international markets with the acquisition of Malaysian fintech firm Curlec and also closed its fifth acquisition by acquiring payment technology startup iZealiant.