SoftBank-backed Meesho to roll out ESOP buyback program worth Rs 200 cr

The SoftBank-backed e-commerce firm Meesho is enabling opportunities for wealth creation for 1,700 past as well as present employees

Online shopping platform Meesho has announced a Rs 200 crore buyback of shares which were issued through Employee Stock Ownership Plan (ESOP), making it the company’s largest ESOP buyback pool to date. 

Bengaluru-based Meesho has a total of 1300 employees. However, at least 1700 people will get the opportunity of wealth creation as the firm is extending this offer to its former employees too.

Meesho said this initiative continues to reaffirm its belief in the collective success of its team and the role they play in the company’s growth story. Eligible current and ex-employees, from junior-level executives to senior leadership can voluntarily participate in this program.

“At Meesho, our employees are the driving force behind our success and we’re thrilled to announce our biggest ESOP buyback program undertaken till date,” said Ashish Kumar Singh, chief human resources officer at Meesho.

“It underscores our commitment to rewarding our teams, and we are pleased that despite prevailing macroeconomic conditions, we persist in providing opportunities for wealth creation and nurture a culture of growth within the organization,” said Singh.

This marks the fourth wealth generation opportunity at Meesho, with the size increasing each year. The company bought back shares worth over Rs 8.2 crore in February 2020, Rs 41.4 crore in November 2020 and Rs 45.5 crore in October 2021.

Meesho was the first horizontal Indian e-commerce company to turn profitable. Since announcing profitability in July 2023, the company continues to remain profitable and cash flow positive. 

In December 2023, Meesho said its loss narrowed 48.42 per cent from Rs 3,251 crore in FY22 to Rs 1,675 crore in FY23.

The firm said that its continued topline growth was further augmented by operating leverage and an increased focus on efficiencies across a number of cost items, including customer acquisition cost, server and infrastructure cost.

Revenue from operations for FY 2022-23 grew by 77 per cent over the previous year to Rs 5,735 crore.

This growth was achieved because of the company’s continued leadership position as the most downloaded shopping app in India in 2022 and 2023.

There was an increased transaction frequency of its existing customers, a widening category mix and a redoubled focus on improving monetisation through various value-added seller services.

The company also revealed the audited H1FY 2023-24 performance. Here, the consolidated revenues from operations were Rs 3,521 crore (up 37 per cent year over year). The loss for the period was Rs 141 crore, lower by 90 per cent Y-o-Y.

The firm turned profitable in Q2 FY24.

According to data.ai, Meesho recorded 145 million app downloads in 2023 in India. The firm also crossed the milestone of 500 million downloads in H1FY 2023-24.

• Meesho announced initiating an Employee Stock Ownership Plan (ESOP) buyback program of Rs 200 crore.
• This makes it the company's largest ESOP buyback pool to date.
• Opportunities for wealth creation for 1,700 past as well as present employees.
• Fourth wealth generation opportunity at Meesho.
• Bought back shares worth $1 million in February 2020, $5 million in November 2020 and $5.5 million in October 2021.