Funding Societies Announces US$16 Million Employee Stock Option Plan Buybackby Fintech News Singapore March 16, 2022
Southeast Asian SME digital financing platform Funding Societies has announced its Employee Stock Option Plan (ESOP) buyback for existing and former employees worth US$16 million (RM67 million).
This is Funding Societies’ fourth ESOP buyback where the previous one saw its employees and company alumni cashing out US$3.5 million (RM14.7 million) worth of shares.
Under the buyback scheme, all eligible former and current employees would have a right to sell their shares at no discount to the Series C+ preference share price to incoming investors, as compared to the customary 20% discount in industry.
Employees may also choose to keep their ESOP or convert their vested ESOP into shares, effectively becoming company shareholders.
The company also offers 50% of total annual salary in ESOP allotment for eligible new hires while eligible loyal employees are entitled to ESOP on every 2-year anniversary of joining the company.
More than 120 current and former employees since Funding Societies’s inception received cash rewards from this share buyback.
The announcement came just a month after the company’s US$ 294 million (RM1.23 billion) Series C+ funding round led by SoftBank Vision Fund 2.
Kelvin Teo, Co-founder and Group Chief Executive Officer of, Funding Societies and Modalku said,
“Even before our Series C+ round, I am pleased to report that 2021 saw the lowest employee attrition rate and the highest employee happiness scores since Funding Societies was founded. Despite the impact of COVID-19, we have taken deliberate steps to appreciate our team across various initiatives including internal communications, learning & development and ESOP, among others.”
Wong Kah Meng, Co-founder and Chief Executive Officer of Funding Societies Malaysia said,
“Our people are our greatest asset, and we wouldn’t be where we are today if not for their hard work and dedication. As we look to grow further this year, we aim to cultivate the same supportive environment for all our colleagues, and this ESOP scheme is an extension of our efforts in showing our appreciation. This fourth round of buybacks will benefit a larger number of former and existing colleagues, including our Malaysian talents.”