ShareChat Announces $19.1 Mn ESOP Buyback
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Mohalla Tech, the parent company behind in short video app Moj and Indic language social media platform ShareChat, on Friday, announced its first ESOP buyback program worth $19.1 million. This comes after the company recently raised over $500 million, taking its valuation to $2.1 billion. With Moj completing its first anniversary, the platform has already achieved market leadership in the Indian short video space with the highest active user base.
Nearly 200 existing and former employees with vested options are eligible to participate in this process.
“Today, ShareChat and Moj are the category leaders in the social media and short video space transforming the lives of millions of users. This exponential growth and success story wouldn’t have been possible without the relentless commitment of our people. With their immense passion and energy, we have seen the biggest growth trajectory in our history in the last few months. This ESOP buyback is our way of giving back to our employees by helping them in their wealth creation journey,” said Ankush Sachdeva, chief executive officer, and co-founder, ShareChat.
ShareChat has also revised the existing vesting schedule. The new vesting policy will allow all the qualified employees to vest 25 per cent of ESOPs in the first year, followed by 8.25 per cent every quarter. In case any employee leaves the organization, the person gets to keep all the vested options and continues to enjoy the related benefits. Further, the company has revised its ESOP exercise price from INR 1551 to INR1, bringing more benefits to the employees.
“We are presently witnessing an exciting growth journey and following an ambitious plan. Therefore, we have aligned our ESOP policy accordingly to reward our people who will be instrumental in paving the way for the next level of growth,” Sachdeva further added.
Mohalla Tech will be the sole buyer in this buyback process. All eligible employees can sell upto 100per cent of their vested ESOPs at their present stock valuation.