Razorpay to buy back ESOPs worth Rs 578 crore

BENGALURU: Fintech platform Razorpay is buying back ESOPs worth Rs 578 crore from 650 existing and former employees. Lightspeed Venture Partners along with Moore Strategic Ventures, who will subsequently join the company’s cap table, are joining the funding round. This is Razorpay’s fourth buyback creating a liquidity event for employees.

Last year, it bought back ESOPs worth Rs 73 crore. Current and former employees, who hold vested stocks of the company, will be eligible to sell up to 30% of their vested ESOP shares. Harshil Mathur, CEO and co-founder of Razorpay, said, “The last two years have been challenging for each one of us, and despite the challenges, our Razors stuck together and collectively guided the company through massive growth. These ESOPs are a way to give back to our Razors and a small effort in making a difference in their lives.”

Razorpay is the most valued fintech company, at $7.5 billion. 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.

Razorpay’s first ESOP sale in 2018 benefitted 140 employees. The second and third ESOP sales in 2019 and 2021 benefited 400 and 750 employees respectively. To date, the company has awarded ESOPs to 1,940 employees.