Equity management platform Hissa on Wednesday said it has launched a $35-million fund to provide liquidity to the Indian employment stock option plan (ESOP) market in India.
The fund, Hissa Fund I, will invest in about 15-20 growth-stage startups and work closely with the founders to provide liquidity to help retain talent and align with their business growth strategies.
Over the years, ESOPs have emerged as a reliable option for new-age tech startups to retain and reward talent. According to a report by Inc42, 16 Indian new-age tech companies have announced ESOP buybacks until October 2024, generating a wealth of over $148 million for their employees.
Food delivery giant Swiggy, which made its debut on the stock market last year, offered $65 million in ESOP liquidity.
“With Indian startups staying private for 10-12 years on average, employees often find themselves holding valuable but illiquid ESOPs. The Hissa Fund solves this problem by offering a seamless secondary transaction platform, empowering employees to access liquidity,” Hissa said in a statement.
The firm said it has made its debut investment in Miko, an AI-powered robotics company, providing liquidity to 32 employees.
The Hissa fund is a full-stack equity management platform by Rulezero Technology managed by founders Satish Mugulavalli and Srinivas Katta and General Partners Srihari Katta and Rithvik Kasireddy.
