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Razorpay Marks 10th Anniversary with ESOP Allocation to All Employees

Razorpay POS

Bengaluru-based fintech unicorn Razorpay, backed by Peak XV Partners, has announced a significant gesture to celebrate its 10th anniversary. The company has allocated employee stock options (ESOPs) worth INR 1 Lakh to each of its over 3,000 employees, spanning all levels and functions.

In a statement, Razorpay highlighted the uniqueness of this move, noting that it is rare for companies to uniformly allocate fresh ESOPs to all employees. For many staff members, this marks their first-ever ESOP allocation.

Razorpay has a history of supporting its employees through liquidity events. In 2018, the company executed its first ESOP buyback, allowing 140 employees to liquidate their vested shares. A second buyback worth $75 million followed in 2022, benefitting 650 current and former employees.

Founded in 2014 by Shashank Kumar and Harshil Mathur, Razorpay has evolved into an omnichannel payments and banking platform. Its offerings now include SME payroll management, lending, insurance, and more.

The company is also part of a growing trend of startups relocating their corporate headquarters back to India. In February 2024, cofounder and CEO Harshil Mathur confirmed plans to shift Razorpay’s domicile from the US to India by the end of the year. This move aligns with the company’s goal of launching an initial public offering (IPO) within the next two years.

To facilitate this transition, Razorpay is undergoing a major restructuring. It plans to consolidate its six Indian units under a single entity, Razorpay Software India. The restructuring could result in a $200 million tax liability to the US government.

Financially, Razorpay has shown robust growth. In FY24, it reported a 365% surge in net profit to INR 33.5 Cr, up from INR 7.2 Cr in the previous fiscal year. Operating revenue also increased by 9% year-on-year, reaching INR 2,475 Cr.

This announcement comes amidst heightened regulatory scrutiny in India’s fintech sector, which has impacted several startups, including ZestMoney, Instamojo, Jupiter, Slice, PayU, and Paytm.

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