The buyback was open to both former and current employees holding vested Esops in the firm. Pocket FM currently has about 800 employees and a four-year vesting period, under which 25% of Esops are vested in the first year, after which they vest at a monthly rate.
“We are excited about the successful completion of our first Esop buyback round, which witnessed enthusiastic participation from both former and existing employees holding vested stocks. This buyback opportunity underscores our commitment to recognizing the invaluable contributions of our team members,” a spokesperson for the firm said, without giving details on how many employees participated in the buyback.
The buyback also comes shortly after the firm raised $103 million from the likes of Lightspeed Ventures and Stepstone Group in late March, at a valuation of $750 million. The latest round had brought Pocket FM’s total funding to date to $196.5 million.
On March 22, ET reported that the firm was in talks with investors like the Abu Dhabi Investment Authority (ADIA) to finalise a new fundraising that was expected to value it around $1.2 billion, making it a unicorn. So far, only two Indian firms have turned into unicorns this year– Bhavish Aggarwal-run artificial intelligence firm Krutrim AI and B2B fintech company Perfios.
Amid a funding winter, Pocket FM also joins a small set of firms that have instituted Esop buybacks in the near past.
Discover the stories of your interest
On March 13, Meesho announced an Esop buyback programme worth Rs 200 crore, open to around 1,700 former and current employees. On February 14, edtech startup Classplus announced its second Esop buyback offer in three years, with 150 employees eligible to participate. Firms like Razorpay and Udaan have also instituted Esop buybacks in the last one-and-half years. In July last year, the Flipkart group conducted a one-time payout for employees worth $700 million linked to PhonePe’s funding round, the largest Esop buyback by an Indian new-economy firm to date.