Razorpay grants Rs 1 lakh worth of ESOPs to all its employees

Fintech unicorn Razorpay announced on Monday that it is offering employee stock options (ESOPs) worth Rs 1 lakh to each of its more than 3,000 employees.

“This is the first time Razorpay has issued ESOPs of this scale, granting shares worth Rs 1 lakh to every current employee. This initiative underscores our strong commitment to an employee-first culture, recognizing the dedication and hard work of our team,” the company said in a statement.

Razorpay chose not to disclose the value of previous ESOP grants, explaining that earlier rounds were offered selectively to employees based on performance.

Other recent new-age companies that have granted ESOPs to their employees include logistics provider Delhivery, food delivery giant Zomato, payment services provider Paytm, and travel tech company Ixigo.

Last month, Delhivery approved the issuance of 4.9 lakh stock options, while Paytm granted 4.05 lakh equity shares and Ixigo offered 17.6 lakh options. The previous month, Zomato issued around 12 million stock options.

Razorpay’s previous ESOP recipients have benefited from multiple buyback rounds. The company conducted its first buyback in 2018, allowing 140 employees to liquidate their vested shares. The second and third buybacks, in 2019 and 2021, benefited 400 and 750 employees, respectively. The fourth buyback, valued at $75 million in 2022, supported 650 employees, including former staff members.

To date, Razorpay has awarded ESOPs to 1,940 employees.

With an annualised total payment volume (TPV) of $180 billion, Razorpay currently powers payments for 80 of India’s 100 unicorns.