The Esop buyback will benefit 40-45 early employees, the Mumbai-based company said.
“We raised a round, so we decided to allocate some portion of it to do a buyback and incentivise people for all they’ve done so far and we’ll continue to do so,” said Dharmil Sheth, cofounder of Pharmeasy. “We’re in a sector that’s fortunately not affected, but our employees’ families might be affected and facing issues.”
Pharmeasy was valued at around $700 million when it raised $220 million, led by Temasek last year.
ET reported in October that South African technology and media conglomerate Naspers and US-based private equity firm TPG
were in talks to invest up to $100 million each in PharmEasy at a $1.2 billion pre-money valuation.
Sheth said Pharmeasy has always wanted employees to have more skin in the game and its Esops account for between 5% and 7% of its total shareholding.
“These are times when we need to instil confidence. The company is doing well, people are putting in more than 100% to ensure we’re up and running,” he added.
India’s startup ecosystem has seen a slew of Esop buybacks, with ET reporting last week that food ordering platform Swiggy would
buy back stock worth $7-$9 million and social commerce platform Meesho
going in for a $5 million buyback.
Educational technology platform Unacademy and online trading platform Zerodha had also announced buybacks earlier in the year.
bought back a portion of its Esops at an enterprise value of Rs 7,000 crore, which the bootstrapped firm used as a metric to call itself a unicorn.