ESOPDhan to ease owning stock by high-growth startup employees

by IANS |

Mumbai, Jan 11 (IANS) Financial services firm ESOPDhan on Wednesday announced its lending offerings to employees of high-growth companies to exercise vested employee stock ownership plans (ESOPs).

Set up by veteran investors Shravan Shroff and Nitin Agarwal, the firm seeks to ease the acquisition of stock options by employees of high-growth SaaS startups.

ESOPDhan said that it has already funded India-based employees of two US-based high-growth tech companies, and discussions are underway with two-three more India based unicorns.

"Our experience with startup teams over the years threw up many concerns of employees rewarded with ESOPs," Shravan Shroff, co-founder of ESOPDhan, told IANS.

"These ranged from 'How to get funds to subscribe for ESOPs and pay the exercise cost and perquisite tax' to 'How not to lose opportunities to create wealth', and 'How to get quick cash while retaining their stocks'," he added.

The RBI-registered NBFC firm solves the cash flow mismatch problem that employees face while converting their ESOPs into equity upon vesting and ensuring that taxation is optimised, thus maximising wealth creation.

"ESOPDhan aspires to be the funding partner of choice in the world of ESOPs by devising added features like 'No EMIs' and arepayment upon liquidity events'," said Shroff.

Industry estimates the value of vested ESOPs by employees of Indian unicorns till date to be more than $10 billion.

The value of vested ESOPS is expected to grow at a fast rate in the coming years.

ESOPDhan said it will work with identified late-stage high growth companies with a growing customer base.

Latest News
Bihar: Man arrested under POCSO Act Sat, Feb 04, 2023, 04:47 PM
Bihar: Man arrested under POCSO Act Sat, Feb 04, 2023, 04:47 PM
Follow path shown by Guru Ravidass: Punjab CM Sat, Feb 04, 2023, 04:44 PM
Ethiopian PM meets Tigray leaders for first time since peace deal Sat, Feb 04, 2023, 04:14 PM
Delhi: Acquitted in Chhawla gang rape case, man, his aide arrested for murder Sat, Feb 04, 2023, 03:58 PM
Avalanche in Afghanistan kills 2, injures 3 Sat, Feb 04, 2023, 03:42 PM
Grenade blast near Sunny Leone's fashion show venue in Imphal Sat, Feb 04, 2023, 03:40 PM
Congress in Kerala says 'no' to hartal Sat, Feb 04, 2023, 03:38 PM
Samsung's new XR headset may be a stand-alone device Sat, Feb 04, 2023, 03:15 PM
Self-defence training for girls: Rs 184 cr allocated, TN schools want more money Sat, Feb 04, 2023, 03:10 PM
5 dead in Chile forest fires Sat, Feb 04, 2023, 03:01 PM
KIYG gives the feel of international events, says U21 hockey star Sharda Tiwari Sat, Feb 04, 2023, 02:49 PM
Logistics startup FarEye lays off 90 employees, 2nd job cut in 8 months Sat, Feb 04, 2023, 02:40 PM
BJP names candidates for 2 Pune Assembly bypolls Sat, Feb 04, 2023, 02:33 PM
PM Modi to visit poll-bound Karnataka, inaugurate various projects Sat, Feb 04, 2023, 02:24 PM