Razorpay, the Bengaluru-based fintech unicorn, is celebrating its 10th anniversary with a bold move to reward its workforce. The company has announced that it will allocate employee stock options (ESOPs) worth INR 1 lakh each to its 3,000 employees. This initiative, which includes employees across all levels and functions, is expected to be a major milestone in the company’s growth trajectory.
A rare gesture in the startup ecosystem
Razorpay’s ESOP distribution is seen as a rare and generous gesture within the startup ecosystem. Unlike many companies that limit such benefits to top-level employees, Razorpay is offering ESOPs to all of its current employees, with this being their first-ever allocation for many. The company expressed that this move is aimed at ensuring that every employee feels like a stakeholder in the company’s success.
“It is uncommon for companies to undertake such initiatives on a large scale, particularly by uniformly allocating fresh ESOPs to all current employees across all levels,” said Razorpay in a statement. This employee-first approach is expected to strengthen employee loyalty and motivation, positioning the company for future success.
Razorpay’s past success and future plans
This marks the third ESOP liquidity program by Razorpay. The company previously executed two buybacks, one in 2018, benefiting 140 employees, and another in 2022, with a buyback worth $75 million benefiting 650 employees. Razorpay, founded in 2014 by Shashank Kumar and Harshil Mathur, has continually expanded its service offerings. Initially focusing on omnichannel payments, it has diversified into SME payroll management, banking, lending, and insurance.
Strategic move back to India
As part of its future growth strategy, Razorpay is moving its corporate domicile back to India from the US by the end of 2024. The decision to shift reflects Razorpay’s confidence in India’s growing fintech sector and aligns with the company’s ambition to go public in the next two years. This move will further strengthen India’s position as a global fintech hub, bringing in more investments and boosting the local economy.
Financial growth amid challenges
Razorpay recently reported a remarkable 365% increase in net profit for FY24, reaching INR 33.5 crore, up from INR 7.2 crore in the previous year. Its operating revenue grew by 9% to INR 2,475 crore, signaling continued growth despite the challenges faced by the fintech industry. The company remains optimistic about its future as it continues to expand and innovate in the competitive fintech landscape.
In conclusion, Razorpay’s move to reward its employees and expand its operations back in India is a testament to its commitment to growth, innovation, and a bright future for the fintech sector in India.
