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Springworks Launches Innovative ESOP Buyback Program, Offering Lucrative Returns for Shareholders

New Delhi: In a strategic move, Springworks has recently unveiled a groundbreaking buyback program, committing a substantial 45 lakhs to acquire shares from existing stakeholders. This move challenges the conventional belief that only funded companies can provide substantial benefits through Employee Stock Ownership Plans (ESOPs).

Contrary to the prevailing notion that ESOPs are more rewarding in funded organizations, Springworks exemplifies how these stock options can yield significant value in profitable, bootstrapped environments. The company’s initiative not only bucks the trend but also presents a distinctive opportunity for employees to witness tangible cash returns.

The buyback initiative stands out for its impressive returns, with early ESOP holders from 2014 witnessing an astounding 1000x return, while those from 2016 are looking at a remarkable 33x return.

Springworks attributes this initiative to recognizing and rewarding individuals who have played pivotal roles in the company’s journey. Both past and present shareholders are reaping the benefits of their contributions, showcasing the company’s commitment to valuing its contributors.

Founder  Kartik Mandaville has opted for an unconventional path by choosing not to sell secondary shares. In a departure from the norm, he states, “While it has become common for founders to sell secondary, I’ll not be selling.” Mandaville emphasizes the priority given to preferred shareholders and the subsequent opportunity for common shareholders as the company continues to grow. This approach aims to convert ESOPs into tangible financial gains for all stakeholders involved.

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