Companies
Razorpay allots ESOPs worth ₹1 lakh to all employees
Summary
- The company has extended ESOPs worth ₹1 lakh to each of its 3,000-plus employees, which will not be differentiated based on role or tenure, Razorpay told Mint.
Mumbai: Fintech company Razorpay on Tuesday said it is allotting share options worth ₹1 lakh to all its employees, as the business completes 10 years.
The company has extended ESOPs worth ₹1 lakh to each of its over 3,000 employees, which will not be differentiated on the basis of role or tenure, Razorpay told Mint.
“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. For many employees, this marks their first-ever ESOP allocation," said the company.
Razorpay conducted its first ESOP buyback in 2018, which enabled 140 employees to liquidate their vested shares. The company also conducted another ESOP buyback of $75 million in 2022 benefiting 650 existing and former employees.
Also read: Will plan IPO only after new business units return more profits: Razorpay’s Shashank Kumar
"The ESOP initiative is our way of ensuring every teammate shares in the success as we continue to innovate, simplify money movement, and create even greater value for businesses in India and beyond," said Harshil Mathur, co-founder and CEO of Razorpay.
Founded in 2014 by Mathur and Shashank Kumar, the Bengaluru-based company last raised $375 million in 2021, led by Lone Pine Capital, Alkeon Capital, and TCV, with participation from existing investors including Tiger Global, Peak XV Partners, among others. So far, Razorpay has raised over $740 million in funding.
The Bengaluru-based fintech, valued at over $7 billion, reported a net profit of ₹34 crore—sharply up from ₹7 crore in FY23 -- according to filings with the Registrar of Companies (ROC). Its payment gateway segment, which contributes 75% of the firm’s total revenue, led this performance.
Razorpay's total income in FY24 stood at ₹2,501 crore with expenses amounting to ₹2,454 crore, compared to FY23 figures of ₹2,293 crore in revenue and ₹2,283 crore in expenses.
