Fri. Mar 29th, 2024

New York-based Tiger Global Management has grabbed ESOPs from Razorpay employees in a secondary deal. The deal also marks the first liquidity event for its employees at the three-year-old startup.

The transaction was confirmed by Harshil Mathur, Co-Founder and CEO of Razorpay, to Economic Times.

With a workforce of 250, the share sale is expected to benefit employees across talent and ranks, from team leaders to support executives at its call centre.

Talking about the share sale, Harshil Mathur, said, “The share sale was also open to employees who have exited the company, but had spent more than a year with Razorpay. We have grown quite a lot over the three years or so, and a lot of our colleagues, who came from corporate backgrounds, joined at far lower salaries. We feel it is the right time to reward their commitments.”

The transaction was facilitated at a 50% premium to the valuation scored at Razorpay’s last funding round. The deal was kicked off in September and is expected to be concluded by the end of November.

Founded by in 2013 by Mathur and Shashank Kumar, Razorpay aims to revolutionize online payments by providing clean, developer-friendly APIs and hassle-free integration.

In January 2018, Razorpay raised $20 million in a series B funding round led by Tiger Global Management, along with participation from Y Combinator and Matrix Partners. The startup has raised over $30 million, across multiple funding rounds, since inception, according to Crunchbase.

ESOPs have played a key role in the Indian startup ecosystem, helping the budding startups to attract talent, without affecting the cash flows.

In September 2018, it was reported that Walmart is set to acquire Flipkart ESOPs worth ₹5,760 crore, benefiting its employees.

Previously in August 2018, it was reported that logistics startup Rivigo’s former employees encashed ESOPs worth ₹71 crore.

By Varun

Startups | Books | Ideas

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