ESOP buybacks among Indian start-ups may resurge as macro headwinds ebb

ESOP buybacks, the primary method of liquidation for employee-owned stocks, usually follow the prevailing funding trend

The one good news that came out of the Indian startup ecosystem in 2023, so far, is the $700 million payout that Flipkart made to its employees. The payout was a result of the separation of Flipkart and Phonepe.

This payout has made close to 20,000 employees at Flipkart and Myntra earn lakhs to crore in payouts.

Employee stock option programmes (ESoPs) or buybacks of shares has been a very common trend in 2020 and 2021, when companies were flushed with funds and used those as a tool to attract and reward good talent.

Earlier this week,