1 Finance Launches ESOP Buyback at ₹450 Crore Valuation

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Mumbai’s startup scene just got a major shake-up as three-year-old personal finance firm 1 Finance launches an ESOP buyback worth ₹450 crore—yes, you read that right. This isn’t just a money move; it’s a bold statement. At a stage when most startups are still figuring out their burn rate, 1 Finance is flipping the script and handing real value back to its people. Over a third of its employees will walk away with something far more tangible than gratitude: cold, hard returns.

Let’s be honest—how many startups even bother with employee-first policies beyond lip service? This isn’t some fluff piece; this is rare, gutsy, and refreshingly grounded.

1. Introduction

Call it unconventional or just plain gutsy, but this ESOP buyback is a flex. And not the loud, shallow kind. It’s 1 Finance saying, “We trust our foundation, and we believe our people deserve a slice of the pie—early.” Three years in, most startups are still courting VCs. These folks are buying back stock from their own team. That’s unheard of. It’s also kind of brilliant.

2. Company Overview

2.1 Founders and Leadership

This isn’t your run-of-the-mill financial venture. Spearheaded by Jeet Marwadi and Keval Bhanushali, 1 Finance isn’t trying to be another wealth app in a sea of clutter. The duo isn’t just building a company; they’re gunning for a full-on category shift. They’re not selling products—they’re reshaping how Indians think about wealth.

2.2 Services and Products

So what’s their play? A hybrid model that blends seasoned finance professionals with algorithmic smarts. It’s tech meets touch—personalized, precise, and brutally honest. Their approach cuts through the jargon and goes deep into the lives of the so-called “mass affluent.” These are the folks too rich for basic banking advice but too ignored by premium wealth firms.

2.3 Regulatory Footprint

While others brag about traction, 1 Finance quietly snapped up serious regulatory muscle. A P2P NBFC license, a Category II AIF license, and even an ERI license. Translation: they’re not here for surface-level scale—they’re building a real financial fortress.

3. ESOP Buyback Program Details

3.1 Structure and Eligibility

Let’s not sugarcoat it—most employees never see a rupee from their ESOPs. At best, it’s a lottery ticket with expiry. But 1 Finance is flipping that narrative. They’re cutting checks now, not ten years later. And this isn’t just for co-founders or boardroom regulars. Over a third of their team, from early hustlers to later key hires, will cash in. That’s inclusivity with actual teeth.

3.2 Significance in the Startup Ecosystem

Honestly? This is big. Early-stage buybacks like this barely exist in India’s startup lore. Most founders wait for a big exit, if it ever comes. But this move? It reeks of confidence and clarity. It tells the market—and future talent—that this startup doesn’t just talk about long-term value. They deliver on it, right now.

4. Industry Context

4.1 ESOP Buybacks in India

ESOP buybacks have slowly become a buzzword in India’s startup playbook. From Pocket FM to Dezerv, the tide is turning. In 2024 alone, over ₹1,400 crore in employee wealth was unlocked via buybacks. 1 Finance is now firmly on that list, but with a twist—they’re doing it far earlier and more broadly than most. That’s not just progressive—it’s gutsy.

4.2 Competitors and Market Position

While robo-advisors in the U.S. hit a plateau, 1 Finance is betting on human plus machine. They’re not automating empathy; they’re enhancing it. In a space choked with generic platforms, this approach feels refreshing. Maybe even a little rebellious.

5. Learning for Startups and Entrepreneurs

There’s a goldmine of lessons here:

• Put employees first, genuinely. Not just in slogans, but in actual wealth-creation.
• Don’t wait forever to reward loyalty. Talent is mobile; retention is earned.
• Licenses matter. Real-world trust still needs legal backbone.
• Hybrid beats hype. Human insight + tech muscle = actual value.

If you’re a founder reading this, take notes. If you’re an employee at a startup, ask better questions. And if you’re a VC, maybe re-evaluate who you’re really backing.

6. The Startups News

At TheStartupsNews.com, we don’t just track funding rounds and unicorn milestones. We highlight stories that crack the mold. 1 Finance’s ESOP buyback isn’t just an HR initiative—it’s a manifesto. A reminder that startups can, and should, challenge norms not just in tech or strategy—but in how they treat the humans building it all.