ESOP Buyback by Even Healthcare to Enhance Employee Wealth

ESOP buyback is the latest initiative from managed care provider Even Healthcare, marking its first-ever Employee Stock Ownership Plan buyback within three years. This strategy aligns Even with Indian startups that leverage stock rewards to retain talent and enhance employee wealth.

Details of the Buyback Initiative

Even Healthcare revealed a buyback worth $0.5 million for its employees based on the primary valuation, without offering any discount. This approach ensures that employees receive the most substantial returns from their stock sales, effectively eliminating the risk of an “ESOP haircut.” This initiative follows a significant $30 million Series A funding round completed by Even Healthcare in October of the previous year.

Commitment to Employee Financial Growth

Matilde Giglio, co-founder of Even Healthcare, expressed that the company is dedicated to creating long-term financial opportunities for its employees. The recent buyback serves as a clear demonstration of the firm’s commitment to ensuring that all contributors to Even’s success also share in its rewards. Even Healthcare aims to set a new industry benchmark and is enthusiastic about the future expansion of its ESOP program.

About Even Healthcare

Founded in 2020 by Mayank Banerjee, Matilde Giglio, and Alessandro Ialongo, Even Healthcare provides various health services to its members, including free consultations, diagnostic tests, and cashless hospitalisation, facilitated by its in-house clinical team alongside insurance partners. The company maintains partnerships only with hospitals that can guarantee care for its members in exchange for a recurring payment.

Trends in ESOP Buyback Programs

Recently, ride-hailing company Rapido also announced its inaugural ESOP liquidity programme. Data from various sources indicates that more than 20 startups have adopted ESOP buyback, liquidity, and payout initiatives, amounting to around $200 million in 2024 alone. The total ESOP buyback and liquidity figures were at $802 million in 2023, $440 million in 2021, and $200 million in 2022.