ESOP payouts, buybacks plummet among Indian start-ups amid funding winter

As the so-called start-up funding winter lingers on, employee stock ownership plan (ESOP) payouts among fledgling companies have hit the skids. Employee earnings from ESOPs have come down from the highs of almost $400 million in 2021 to less than $100 million this year, according to equity management platform Qapita.

While the funding slowdown has had no significant impact on the issuance of ESOPs, a liquidity crunch has caused the once-overflowing well of ESOP buyback programs to run dry.

Start-up funding in India hit new heights in 2021 when investments reached a total of $44.5 billion. Since then, capital has