LenDenClub Enables ESOP Liquidity For Its Employees
LenDenClub proudly announces its successful ESOP (Employee Stock Ownership Plan) liquidation, reaffirming its commitment to fostering a culture of meritocracy and rewarding its employees for their exceptional contributions.
LenDenClub has emerged as the pioneer in the Indian fintech industry by becoming the first Peer-to-Peer lending platform to facilitate ESOP liquidity. Among the company's workforce consisting of 200 employees, approximately 30 per cent of team members, spanning across senior, mid-level, and junior positions, possess ESOPs. When considering the current liquidation event, it is notable that approximately 85 per cent of eligible employees have opted to exercise their right to participate. Nevertheless, it is worth mentioning that a select number of individuals have made the decision to pursue partial liquidation rather than opting for complete liquidation.
As an organisation deeply rooted in meritocracy, LenDenClub believes in recognizing and rewarding individuals who work hard and achieve outstanding results. In line with this philosophy, the company offers ESOPs to its employees, recognizing their instrumental role in creating value for the organization. Unlike many other companies, LenDenClub extends ESOP eligibility to every single employee, regardless of their position within the company.
The pandemic had posed many financial challenges for individuals across the globe. In a heartening incident, a former office boy who had been allocated ESOPs faced financial distress due to home loan EMIs. Recognizing the employee's plight, the management acted promptly and offered their support by facilitating the liquidation of his ESOPs, providing crucial financial relief. This compassionate gesture took place in the midst of the pandemic in 2020.
Now, the company has introduced a liquidity program specifically designed for the current ESOP holders, further enhancing their financial opportunities.
ESOPs have proven to be a transformative benefit for LenDenClub's employees. Another former employee, Priti Ranjan Dhal, was grateful for steadfast support during a significant milestone in his life, thanks to the ESOPs provided by the company. Priti Ranjan Dhal, who joined LenDenClub during its early stages, contributed for approximately four years before eventually parting ways.
The story of Rajat Sinha, a senior executive with over five years of stint at LenDenClub, exemplifies the remarkable patience and incredible returns that ESOPs can offer. Despite contemplating selling his ESOPs earlier in 2019, Rajat chose to hold onto his shares till this liquidation event. His decision was rewarded with an astounding return of 15 times more than the previous valuation, providing him with an unexpected windfall and reaffirming the potential of LenDenClub's growth.
"This is a proud moment for me and my Co-founder Dipesh. Our team has shown unwavering belief in us, and we have proven them right. This achievement further reinforces our company's commitment to rewarding our top performers with additional ESOPs. Inspired by the meritocratic principles of the global giant 3G Capital, we implemented them in LenDenClub a few years ago. The results have been remarkable, not just in terms of organizational performance, but also in terms of wealth creation for our team members. We have individuals who hold a range of ESOPs, from a few to a few hundred. Considering the set price of Rs. 3.25 lakhs for this current round of liquidation, the extent of wealth creation is truly remarkable. However, it's important to remember that earning such wealth requires patience," stated Bhavin Patel, CEO of LenDenClub. "We strongly believe in a shared vision, meritocracy, and our commitment to building wealth for our dedicated team members who contribute to the growth of our organization."
LenDenClub's pioneering move in facilitating ESOP liquidity sets a new benchmark in the fintech industry, highlighting the organisation's progressive approach towards employee benefits. By recognising the contributions and fostering the financial well-being of its employees, LenDenClub aims to continue leading the way in fostering a culture of excellence and growth.
