Zerodha launches a new employee stock options plan

Zerodha launches a new employee stock options plan

Zerodha, a stockbroking application, is making this Diwali extra memorable for its employees by0 launching a new employee stock options (ESOP) plan. With this announcement, the company joins the ranks of several early-stage companies, including Paytm, Swiggy, and Rivigo, among others, that have either expanded or created a new ESOPs pool.

With 6 million users, Zerodha is India’s largest stockbroking app for retail trades.

According to regulatory filings with the Registrar of Companies, the Bengaluru-based company has allocated 7,00,000 options under its new ESOPs Plan 2021. (RoC). As per Fintrackr’s estimates, the new pool is worth a little over Rs 100 crore.

The plan follows the company’s Rs 65 crore ESOP buyback. While the future buyback will be worth Rs 200 crore, Zerodha said it will acquire options this year for Rs 1,400 each.

Unlike other startups, Zerodha is entirely self-funded and profitable. According to its co-founder and CEO, Nithin Kamath, the company’s profits have more than doubled to Rs 1,000 crore in FY2o21.

The firm has ‘self-assessed’ its valuation as it is yet to raise any external funding. It has also applied for an AMC (asset management company) license and plans to allow clients to borrow against their shares at some point.

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