Even Healthcare launches $500,000 ESOP buyback in Bengaluru

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Even Healthcare has announced its first-ever Employee Stock Ownership Plan (ESOP) buyback, offering employees a $500,000 buyback at primary valuation without any discount. This move, aimed at employee wealth creation, follows its $30 million Series A funding round. Unlike many startups that implement ESOP “haircuts,” Even Healthcare ensures employees receive maximum benefits. The startup, founded in 2020 by Mayank Banerjee, Matilde Giglio, and Alessandro Ialongo, operates on a fee-based model, offering unlimited consultations and diagnostics. Its transparent ESOP structure and guaranteed refresher benefits reinforce its commitment to fair employee compensation. The initiative highlights the growing trend of ESOP-driven hiring, with professionals prioritizing long-term equity over fixed salaries. Industry experts see ESOPs as a key factor influencing career choices, attracting talent from multinational corporations to startups.

1. Introduction to Even Healthcare

1.1 Founders and Background

Even Healthcare was founded in 2020 by Mayank Banerjee, Matilde Giglio, and Alessandro Ialongo. The company emerged as a disruptive force in India’s healthcare sector, focusing on integrated managed care services.

1.2 Working Model of Even Healthcare

Even Healthcare provides unlimited consultations, diagnostics, and hospitalization coverage through a subscription-based model. The company partners with selected hospitals to ensure quality care for its members.

1.3 Revenue Model

Even Healthcare operates on a fee-based system. Members pay an annual subscription of approximately Rs 4,800, granting them access to unlimited consultations and diagnostic services. Additional hospitalization coverage is available as an optional add-on.

1.4 Funding Background

The company secured $30 million in a Series A funding round in October last year. The investment fuels its mission to expand managed healthcare services and strengthen its market presence.

2. Even Healthcare’s $500,000 ESOP Buyback Initiative

2.1 Structure of the Buyback Program

Even Healthcare’s ESOP buyback is valued at $500,000, conducted at the company’s primary valuation without any discount. Employees can cash in their stock options without suffering from the common industry practice of ESOP “haircuts.”

2.2 Ensuring Employee Financial Gains

Unlike many startups, Even Healthcare eliminates ESOP haircuts, allowing employees to receive the full valuation of their equity holdings. This move sets a new benchmark in the Indian startup ecosystem.

3. Even Healthcare’s Transparent ESOP Policy

3.1 Employee-Centric ESOP Allocation

Even Healthcare grants stock options to all full-time employees under the same terms as its founders. This structure promotes fairness and inclusivity in wealth distribution.

3.2 Guaranteed Refresher Benefits

The company ensures continuous stock-based rewards through guaranteed refresher benefits, reinforcing long-term financial opportunities for employees.

3.3 Public Disclosure of Compensation Structure

To promote transparency, Even Healthcare publicly displays its compensation structure and ESOP allocations on its careers page, ensuring employees understand the company’s compensation policies.

4. Industry Insights on ESOP-Driven Hiring Trends

4.1 Growing Preference for ESOPs Over Fixed Salaries

ESOP-driven hiring is influencing career decisions as professionals opt for equity-based rewards over fixed salaries. Startups offering lucrative stock options attract top talent from multinational corporations.

4.2 Expert Opinions on ESOP Impact

Raghav Goyal, a Bengaluru-based venture capitalist, highlights how ESOPs have become a key factor in job selection, with employees now considering their roles as investment opportunities.

4.3 ESOP Buybacks in the Indian Startup Ecosystem

According to TheKredible’s data, over 20 Indian startups have executed ESOP buybacks and liquidity programs worth $200 million in 2024. The trend is expected to grow, with startups increasingly leveraging ESOPs for talent retention.

5. Learning for Startups and Entrepreneurs

5.1 Importance of Employee-Centric ESOPs

Startups must recognize the significance of offering transparent and fair ESOP policies to attract and retain top talent. Eliminating ESOP haircuts fosters trust and long-term commitment from employees.

5.2 Transparency in Compensation Structures

Publicly disclosing ESOP allocation and salary structures helps build credibility and strengthens employer-employee relationships, ensuring a motivated workforce.

5.3 ESOPs as a Competitive Hiring Advantage

Startups competing with multinational corporations for talent must leverage ESOPs effectively to attract professionals seeking long-term financial growth through equity ownership.

About The Startups News

The Startups News is a leading platform covering the latest developments in the startup ecosystem. From funding updates and industry trends to startup success stories and business strategies, we provide in-depth insights into India’s entrepreneurial landscape. As startups like Even Healthcare redefine employee compensation through ESOPs, The Startups News continues to track emerging trends that shape the future of Indian startups.