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ESOP payouts, buybacks plummet among Indian start-ups amid funding winter

While the funding slowdown has had no significant impact on the issuance of ESOPs, a liquidity crunch has caused the once-overflowing well of ESOP buyback programs to run dry

Fintech, startups
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Aryaman Gupta New Delh

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As the so-called start-up funding winter lingers on, employee stock ownership plan (ESOP) payouts among fledgling companies have hit the skids. Employee earnings from ESOPs have come down from the highs of almost $400 million in 2021 to less than $100 million this year, according to equity management platform Qapita.

While the funding slowdown has had no significant impact on the issuance of ESOPs, a liquidity crunch has caused the once-overflowing well of ESOP buyback programs to run dry.

Start-up funding in India hit new heights in 2021 when investments reached a total of $44.5 billion. Since then, capital has

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First Published: May 31 2023 | 5:17 PM IST

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