ESOP Buyback at Univest: Rewarding Employee Contributions

Univest, a retail advisory platform, has successfully completed its inaugural Employee Stock Ownership Plan (ESOP) buyback, amounting to Rs 1.61 crore. This initiative allows early employees to cash in a segment of their ESOPs, generating financial rewards linked to their equity stakes.

The goal of this initiative is to recognise and reward employees who played a significant role during the company’s early development years, specifically those involved in product, technology, marketing, and customer support. Participants in the programme were employees who joined during the initial seed and pre-Series A phases.

Aligning Incentives with Company Growth

As stated by Univest, this buyback is focused on aligning long-term incentives with the company’s growth path. This initiative follows the rollout of its ESOP policy in late 2024 and is part of a larger strategy to retain talented individuals within the fintech sector.

Pranit Arora, the CEO and co-founder of Univest, commented that the choice to provide early liquidity stemmed from acknowledging how employee ownership can bolster organisational stability. Other co-founders also highlighted the necessity of valuing contributions that extend beyond standard salaries and bonuses, particularly in fast-paced realms such as engineering and product development.

Future Plans for Buybacks

The startup, based in Gurugram, intends to consider future buyback possibilities in conjunction with forthcoming fundraising efforts. Currently, the company offers a technology-forward trading and investment platform focused on empowering retail investors with research-informed tools.

Founded in 2022 by Pranit Arora, Avneet Dhamija, and Vikash Agarwal, Univest serves as a retail advisory platform providing general recommendations through its SEBI-registered RA entity, Uniresearch. The platform delivers expert advice on trading in stocks, derivatives, and commodities.

Recent Funding and Market Position

In December of the previous year, Univest secured $10 million during a Series A funding round led by Bertelsmann India Investments (BII). The startup is in competition with various players in the market, including Liquide, Waya, Tejimandi, Stoxbox, Gapup Club, and INDmoney.