Startups are bending over backwards to sweeten deals to hire and retain employees in an increasingly competitive market.
Year to date, 32 Indian startups have spent close to ₹3,000 crore, or about $440 million, to buy back employee stock options (Esops), a VCCircle analysis showed.
Esop buybacks have become a popular way for startups to incentivise workers on the hunt for new opportunities that offer growth, higher payouts, and the remote work option as the economy rebounds after pandemic-related curbs were eased.
In addition, large fundraisings during the year have helped them announce generous buybacks. One in three startups that announced Esop buybacks turned unicorns this year.
