Meesho unveils its largest ever ESOP buyback programme worth Rs 200 crore

Unicorn ecommerce startup Meesho has announced its largest Employee Stock Ownership Plan (ESOP) buyback programme, valued at Rs 200 crore (approximately $25 million). 

The programme is set to benefit around 1,700 past and present employees, spanning from junior-level executives to senior leadership. 

Past ESOP buybacks

This is Meesho's fourth ESOP buyback programme, following previous buybacks in February 2020, November 2020, and October 2021, which totaled $11.5 million. 

Ashish Kumar Singh, Meesho's CHRO, said, "This underscores our commitment to rewarding our teams, and we are pleased that despite prevailing macroeconomic conditions, we persist in providing opportunities for wealth creation and nurturing a culture of growth within the organisation."

Sustained profitability and expansion plans 

Unlike other ecommerce marketplaces, Meesho achieved profitablity in July 2023 and has since maintained profitability and positive cash flow. Interstingly, The company reported a 48% reduction in losses and a 77% increase in revenue year-on-year, reaching Rs 5,735 crore in the last fiscal year.

With its eyes set on expansion, The company is exploring new domains, including establishing a financial services platform and scaling up its grocery delivery operations.

Strategic focus on Tier 2 cities and beyond

A key factor in Meesho's success is its strategic focus on Tier 2 and lower cities, which account for over 50% of its sales. This approach targets a demographic often overlooked by larger industry players, proving to be a lucrative strategy.

The company claims that its current Gross Merchandise Value (GMV) run rate exceeds $5 billion, with plans to further tap into small-town markets and cater to value-conscious customers.

Empowering small businesses and entrepreneurs

Meesho provides small businesses, including SMBs, MSMEs, and individual entrepreneurs, access to millions of customers across India. The company offers a wide selection of over 30 categories, pan-India logistics, payment services, and customer support capabilities. 

The recent launch of Valmo, a logistics marketplace, further enables micro-entrepreneurs to become Meesho logistics partners.