In an encouraging move for the startup ecosystem, 23 Indian startups have introduced stock option buyback schemes in 2023, enabling over 3,000 employees to earn a combined wealth exceeding ₹1,448 crore. This reflects the growing focus on rewarding employees who contribute significantly to the success of their companies.

Employee Stock Ownership Plan

Notably, Employee Stock Ownership Plan (ESOP) buybacks emerged as a key strategy to attract and retain talent in India's competitive startup sector. In 2023 alone, 12 startups facilitated ESOP buybacks, collectively generating $850 million in net income for their employees. Interestingly, $700 million of this amount came exclusively from Flipkart, highlighting the e-commerce giant’s commitment to rewarding its workforce.

A comprehensive list of startups implementing such schemes showcases a variety of industries, including fintech, e-commerce, SaaS, and health tech. These companies aim to recognize the contributions of their teams while fostering financial growth for employees. By offering stock buybacks, startups not only create wealth for employees but also boost morale, ensuring sustained productivity and innovation.

Startups Continue 

As startups continue to mature, ESOP buyback schemes are expected to grow in popularity, aligning employee interests with long-term business goals. Such initiatives also encourage employees to stay invested in their companies’ success, creating a culture of shared growth and commitment.

This trend is likely to gain momentum in 2024, with startups focusing on wealth creation for their teams through innovative reward mechanisms. The move signifies a robust future for India's startup landscape, prioritizing both organizational success and individual financial well-being.

Author Opinion 

Recently news has come out under which with the help of buyback schemes, more than 3000 employees will be given a big help of ₹ 1,448 crore. This will help the young generation to increase their wealth even more in 2024. Along with this, our country India will also continue to move forward in terms of technology and this will be a good thing.