Typically, ESOPs are granted based on seniority, and within certain roles viewed as critical for the company.
This ESOP comes soon after PhonePe was spun-off from Flipkart as a separate entity at a valuation of $5.5 billion in December 2020.
PhonePe said it has issued a minimum ESOP of $5,000 (over Rs 3 lakh) to every employee. For startups, ESOPs are a tool to attract talent as they can later sell these shares at a potentially higher value if the company goes public or buys back shares.
Sameer Nigam, co-founder and CEO of PhonePe, tweeted: “incredibly emotional and gratifying moment for Rahul Chari (co-founder) and myself as founders. Shared wealth creation feels awesome.”
“As the organisation generates more value, it translates into more benefits for every employee. There is more for everyone, removing the need for internal competition. The stock option plan ensures that there is also an opportunity to generate wealth and be participants in PhonePe’s growth story,” the company said in a blog post.