E-commerce marketplace Meesho has announced an Employee Stock Ownership Plan (ESOP) buyback programme valued at ₹200 crore, marking the largest buyback initiative in the company's history. This move aims to extend benefits to nearly 1,700 past and present employees.
In a statement, Meesho emphasised that this move reflects the collective efforts and dedication of its team towards the company's growth journey. Eligible current and former employees across the spectrum, from junior-level executives to senior leadership can voluntarily participate in this programme, it added.
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."
The company had previously conducted buyback programmes in February 2020, November 2020, and October 2021, amounting to a total of $11.5 million. Additionally, Meesho achieved profitability in July 2023 and continues to maintain profitability and positive cash flow.
Meesho, backed by Meta, Peak XV, Prosus Ventures, B Capital, and SoftBank, is a leading player in the social commerce startup landscape and ranks among the fastest-growing e-commerce startups in India. According to a recent report by AllianceBernstein, Meesho's current Gross Merchandise Value (GMV) run rate exceeds $5 billion.
Meesho is now eyeing expansion into new domains. The company is poised to establish a financial services platform and scale up its grocery delivery operations as per reports.
According the AllianceBernstein report, one of Meesho's key strengths lies in its ability to tap into Tier 2 and lower cities, which contribute to over 50% of its sales. This focus allows Meesho to effectively target a demographic often overlooked by industry giants like Flipkart and Amazon. AllianceBernstein notes that Meesho's emphasis on small-town markets and catering to value-conscious customers has proven to be a lucrative strategy, yielding significant returns for the company.
