BharatPe today announced the launch of the world’s first Merchant Shareholding Program (MSP) for its merchant partners. This first-ever, disruptive program is being designed with the objective of providing an opportunity to the company’s millions of offline merchant partners to become part equity owners of BharatPe, it said in a press release.
The company will be rolling out this program to its 7.5 million+ existing merchant partners and extend this to new merchants who join the BharatPe family in the future. BharatPe will be creating an equity pool structure worth upto $100 mn for MSP to be allotted to eligible merchants over the course of the next four years. The company is aiming that the MSP pool will be worth close to $1 billion by the time it goes public.
Ashneer Grover, Co-Founder and Managing Director, BharatPe, said “While we as startup community celebrate the coming of age with multi billion dollar IPOs, there is resentment brewing elsewhere. Millions of consumers and merchants are feeling left out of the digital / startup value creation in India. The folks who contribute to MAUs / DAUs / Revenue of startups and therefore the valuation don't get any equity upside or even allocation in IPOs. We will change it at BharatPe by making our merchants part equity owners and giving them the IPO upside through first of its kind program in the world."
Sumeet Singh, General Counsel and Head- Corporate Affairs and Corporate Strategy, BharatPe, “Over the last few years, ESOPs have emerged as one of the most lucrative programs for startups looking at attracting talent, giving high returns to employees willing to invest their time and energies in building a company grounds up. The Merchant Shareholding Program is the first-of-its-kind initiative designed to create wealth for our loyal merchant partners who intend to be with us for the long haul.”
