Mohalla Tech, the parent company behind India’s undisputed market leader in short video app Moj and Indic language social media platform ShareChat, has announced its first ESOP buyback program worth $19.1 million (approx. Rs. 140 crores).
This comes after the company recently raised over $500 million, taking its valuation to $2.1 billion. With Moj completing its first anniversary, the platform has already achieved market leadership in the Indian short video space with the highest active user base.
Nearly 200 existing and former employees with vested options are eligible to participate in this process.
Ankush Sachdeva, CEO and cofounder, ShareChat, said, “Today, ShareChat and Moj are the category leaders in the social media and short video space transforming the lives of millions of users. This exponential growth and success story wouldn’t have been possible without the relentless commitment of our people.
“With their immense passion and energy, we have seen the biggest growth trajectory in our history in the last few months. This ESOP buyback is our way of giving back to our employees by helping them in their wealth creation journey.
“We are presently witnessing an exciting growth journey and following an ambitious plan. Therefore, we have aligned our ESOP policy accordingly to reward our people who will be instrumental in paving the way for the next level of growth,” Sachdeva said.
ShareChat has also revised the existing vesting schedule. The new vesting policy will allow all the qualified employees to vest 25% of ESOPs in the first year, followed by 8.25% every quarter. In case any employee leaves the organisation, the person gets to keep all the vested options and continues to enjoy the related benefits. Further, the company has revised its ESOP exercise price from Rs. 1551 to Re.1, bringing more benefits to the employees.
Mohalla Tech will be the sole buyer in this buyback process. All eligible employees can sell upto 100% of their vested ESOPs at its present stock valuation.