CoinSwitch completes maiden ESOP buyback

Crypto unicorn CoinSwitch has completed its first ESOP buyback worth $2.5 million, roughly Rs 19 crore.

Start-ups include Employee Stock Option Plans or (ESOPs) in their employees' compensation at the time of hiring them or during performance assessments. These ESOPs are subject to a vesting period during which employees are not permitted to sell their shares. When the vesting term expires, the corporation has the option of facilitating a buyback,ie buy the shares from the employees,  at which point employees may sell their shares.

CoinSwitch is a global aggregator of crypto exchanges and is backed by investors like Andreessen Horowitz (a16z), Tiger Global, Sequoia Capital, Ribbit Capital, Paradigm, and Coinbase Ventures. They raised $260 million in Series C funding in September 2021 and became the country’s highest valued crypto unicorn at a valuation of $1.9 billion. Other investors include Tiger Global, Sequoia Capital, Ribbit Capital, Paradigm.

It is noteworthy to mention that CoinSwitch is a16z's first investment in an Indian start-up. a16z is a venture capital founded by Marc Anderssen and Ben Horowitz.  The crypto unicorn is also Tiger Global's first investment in an Indian crypto company.

The organisation has grown from 20 to 500 employees in the last two years. "The Equity Buyback program is a small effort to acknowledge our employees' contribution to the phenomenal growth of CoinSwitch. We meet and exceed our targets in India because of the amazing team and shall continue to launch similar liquidity events as part of our commitment to creating wealth for all," said Ashish Singhal, co-founder and CEO, CoinSwitch.