E-Commerce Company Meesho Debuts INR 200 Cr Buyback Offer Targeting 1,700 Employees

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Three points you will get to know in this article:

  • Meesho’s largest buyback program benefits past and current employees.
  • The e-commerce unicorn bought back shares worth $5.5 million in October 2021 and $5 million in December 2020.
  • Meesho became profitable as of the second quarter of FY24.

Introduction to Meesho

Meesho stands out as a vibrant online shopping hub under the umbrella of Fashnear Technologies Private Limited, an Indian company. It serves as a bustling marketplace connecting suppliers, resellers, and eager shoppers. What sets it apart is its seamless integration with popular social media platforms like Facebook and Instagram. This means your shopping journey is not just limited to the Meesho website; it extends to where you already spend much of your online time.

Setting up shop on Meesho is a breeze. Sellers can create their own virtual storefronts, cherry-pick products from a diverse array of sellers both online and offline, set their prices, and effortlessly share their store links with potential buyers through social media channels. Meesho caters particularly to small-scale retailers dipping their toes into the e-commerce waters for the first time. It’s like having a supportive guide by your side, helping you navigate the vast online market and reach customers far and wide.

ESOP Buyback Initiative: Empowering Meesho's Workforce

Meesho, the booming ecommerce platform, has just unveiled a remarkable move: a whopping INR 200 Cr (approximately $25 Mn) employee stock ownership plan (ESOP) buyback program. This marks the largest ESOP buyback initiative ever taken by Meesho, promising to empower roughly 1,700 individuals who have been part of its journey, both past and present. In a heartfelt announcement made on Wednesday (March 13), the ecommerce startup expressed its commitment to its workforce. The program warmly welcomes both current team members and those who have contributed in the past, ranging from junior-level associates to seasoned leaders. It’s a wonderful opportunity for everyone involved to share in the success of the company they’ve helped build.

Before this, Meesho had carried out three repurchase programs for its employees. They repurchased shares valued at $5.5 million in October 2021, $5 million in November 2020, and $1 million in February 2020.

Meesho's Dedication to its Teams

Sharing his thoughts on the introduction of the ESOP repurchase initiative, Meesho’s Chief Human Resources Officer, Ashish Kumar Singh, expressed, “This initiative highlights our dedication to acknowledging our teams’ efforts. We’re delighted that despite the current economic landscape, we persist in offering avenues for wealth creation and fostering a culture of progress within our organization.”

Meesho's Growth Trajectory

Established in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho proudly boasts a vast network of over 1.5 million sellers hailing from every corner of India. The company also delights in serving a staggering 140 million active users annually through its ecommerce platform.

Backed by esteemed investors such as DST Partners, Elevation Capital, Facebook, and Prosus, Meesho’s parent entity, Fashnear Technologies, disclosed a notable achievement: a 48% reduction in net loss, plummeting from INR 3,248 Cr in the previous fiscal year to INR 1,675 Cr in FY23.

In a significant milestone, the company announced its journey to profitability, revealing that it had achieved profitability during the second quarter of FY24.

Innovative Tech Platform: Valmo

Meesho recently introduced Valmo, its innovative tech platform aimed at bridging supply chain gaps across the country. This empowering tool enables micro-entrepreneurs to efficiently fulfill orders, bolstering the network.

Trend of ESOP Buybacks in the Startup Ecosystem

This exciting update arrives amidst a wave of ESOP buyback announcements from various startups this year, defying the prevailing funding challenges. Just last week, MyGate, a Bengaluru-based community and security management startup, rolled out an ESOP buyback plan for 51 dedicated employees. Prior to this, Classplus, a prominent edtech SaaS unicorn, initiated an ESOP buyback program benefiting more than 150 valued team members.

Recently, Meesho, a thriving ecommerce platform, launched its largest-ever INR 200 Cr ESOP buyback program, aiming to empower about 1,700 past and present employees. This initiative underscores Meesho’s commitment to its workforce, recognizing their contributions. Founded in 2015, Meesho now boasts over 1.5 million sellers and 140 million active users annually. Backed by prominent investors, the company has reduced its net loss by 48% and achieved profitability in FY24’s second quarter. The introduction of Valmo, a tech platform improving supply chain efficiency, marks a significant step in Meesho’s growth amidst a trend of startups launching ESOP buyback plans.

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