Fintech unicorn Razorpay announced its latest resale. And at $ 75 million, this secondary sale of shares has been the largest by Razorpay since its inception in 2014. It comes after the previous $ 10 million ESOP buyout in March 2021.
Led by Lightspeed Venture Partners and involving Moore Strategic Ventures based in New York, the circle is open to 650 current and former Razorpay employees in a variety of roles, including software engineers, product managers, customer service agents, sales and administrative staff. . They will be able to sell up to 30% of their ESOP shares, which will be repurchased at a 14% discount evaluation of Razorpay in December 2021 – $ 7.5 billion.
Both Lightspeed Venture Partners and Moore Strategic Ventures will join Razorpay as investors, while early angel investors will give up their unicorn stakes.
Razorpay’s latest (and largest) ESOP repurchase is the second largest in India’s startup ecosystem, following the 600 rupee Flipkart repurchase in July 2021. It will be completed in the next few weeks.
According to Razorpay co-founder and CEO Harshil Matur, the current sale of ESOP will not affect the evaluation of fintech unicorn. As mentioned earlier, it was valued at $ 7.5 billion in December 2021 after a new round of funding of $ 375 million.
“There is no change in the company’s valuation as part of the deal. The company will not even be a party to the deal. These are investors who wanted to invest in the company. But we are very well capitalized, so we decided to use this opportunity to create wealth for our employees, “said Matur.
This comes after the unicorn, which recently became international with the acquisition of Curlec, grew strongly last year (300% growth) and aims to reach $ 90 billion in TPV (total payments) by the end of the year. In addition, it expects to grow its trading base from eight million to 10 million by the end of the year.