Dezerv Completes Rs 46 Crore ESOP Buyback, Strengthening Employee Alignment and Liquidity

Dezerv Completes Rs 46 Crore ESOP Buyback, Strengthening Employee Alignment and Liquidity

Wealth-tech startup Dezerv has successfully concluded its Employee Stock Ownership Plan (ESOP) buyback program, facilitating the liquidation of vested stock worth up to Rs 46 crore ($5.3 million) for eligible current and former employees. This move is a significant milestone for the company, which was established just a few years ago in April 2021 by former IIFL Wealth Senior Managing Partners. Dezerv’s latest initiative is a part of its ongoing commitment to ensuring that employees remain motivated and aligned with the company's long-term goals.

The ESOP buyback program was introduced to offer early employees the chance to liquidate their vested stock options, providing them with financial flexibility. While the buyback was an opportunity for employees to realize the value of their stock options, the company noted that many employees chose to remain invested, reflecting their long-term belief in Dezerv’s potential. This move is a testament to the company’s strong culture and its continued effort to create a work environment where employees are deeply invested in the company’s mission and vision.

A Step Toward Enhancing Employee Alignment

Sandeep Jethwani, Co-founder of Dezerv, emphasized the company’s focus on employee motivation and alignment with its values. “We remain committed to delivering the highest quality investment experience to India's wealth creators. A crucial part of ensuring this is the motivation and alignment of the team with our values. This ESOP buyback is one among many such aspects of our culture,” said Jethwani in a statement.

The ESOP buyback program is particularly significant for a startup like Dezerv, which is still in its early years but already making a significant impact in the wealth-tech space. By offering employees an opportunity to cash in on their stock options, Dezerv reinforces the idea that employees’ interests are closely aligned with the company’s growth. ESOPs are known to encourage long-term thinking, as employees stand to benefit directly from the company’s success.

What are ESOPs?

Employee Stock Ownership Plans (ESOPs) are stock options granted by companies to their employees, allowing them to own a stake in the business. ESOPs typically vest over a period of time, providing employees with the opportunity to benefit from the company’s success as the stock value increases. Companies use ESOPs as a strategy to attract and retain top talent, as well as to align the interests of employees with the long-term performance and growth of the company.

For a wealth-tech startup like Dezerv, ESOPs are an essential part of its strategy to motivate its workforce and foster a sense of ownership. By allowing employees to participate in the company’s growth through stock ownership, Dezerv strengthens its internal culture and creates a deeper sense of commitment among its team members.

Dezerv’s Growth and Vision

Founded by Sandeep Jethwani, Vaibhav Porwal, and Sahil Contractor, Dezerv was created with the vision of providing affluent Indians with expert-led investment solutions. The co-founders bring with them a wealth of experience from their previous roles at IIFL Wealth, where they honed their expertise in wealth management.

Since its inception, Dezerv has quickly established itself as a significant player in the wealth-tech space. In December 2024, the company crossed Rs 10,000 crore in assets under management (AUM), a testament to its growing success in the competitive wealth management industry. With a team of 300 professionals, Dezerv has expanded its reach, with offices in cities like Mumbai, Delhi, Bengaluru, Hyderabad, and Pune. The company’s client base includes high-net-worth individuals (HNIs) from some of India’s largest and most influential companies, such as Amazon, Zomato, Swiggy, Google, BCG, and McKinsey.

Dezerv aims to disrupt the wealth management industry in India by offering tailored investment solutions backed by data-driven insights. Its services are designed to help affluent individuals navigate complex financial landscapes, with a focus on long-term wealth creation. The company has positioned itself as a leader in the alternative investment space, offering exclusive opportunities that are typically accessible only to the ultra-wealthy.

The Importance of ESOPs for Startups

For startups, ESOPs serve as an essential tool for attracting and retaining top talent in an increasingly competitive job market. By offering employees a stake in the company, startups can compete with larger, more established firms for the best talent. ESOPs also play a crucial role in aligning employees’ interests with the long-term goals of the company.

Startups that offer ESOPs can create a sense of ownership among their employees, motivating them to work harder and contribute to the company’s success. In the case of Dezerv, the buyback program has allowed employees to realize the value of their hard work and dedication, further strengthening the bond between the company and its workforce.

In addition, the liquidity provided by the ESOP buyback offers employees the opportunity to access cash, which may be particularly important for those who have been with the company from the early stages. This liquidity event can serve as a reward for employees who have contributed to the company’s growth and success, helping to retain talent and foster long-term loyalty.

Dezerv’s Future: A Focus on Affluent Indians and Alternative Investments

Dezerv’s growth trajectory is closely linked to its focus on serving India’s affluent class. The company’s wealth management solutions are designed to meet the unique financial needs of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNWIs). As India’s wealth grows, the demand for specialized investment solutions also increases, and Dezerv is positioning itself as a key player in this growing market.

One of the company’s key areas of focus is alternative investments. Alternative investments, such as private equity, hedge funds, and real estate, are becoming increasingly popular among affluent investors who are looking for opportunities outside traditional stock and bond markets. Dezerv aims to capitalize on this growing trend by providing its clients with access to exclusive investment opportunities that are not readily available through conventional channels.

As the wealth management landscape in India evolves, Dezerv is poised to continue its growth by expanding its product offerings and broadening its client base. With a strong focus on personalized investment strategies and a commitment to excellence, Dezerv is positioning itself as the go-to platform for affluent individuals seeking expert-led financial guidance.

Conclusion: A New Chapter for Dezerv

The completion of the ESOP buyback program is an important milestone for Dezerv as it strengthens the company’s internal culture and enhances employee alignment with its long-term goals. By providing early employees with the opportunity to liquidate their stock options, Dezerv not only rewards their hard work but also reinforces its commitment to building a motivated and engaged workforce.

As Dezerv continues to grow and expand its presence in the wealth-tech sector, it remains focused on delivering innovative investment solutions to India’s affluent class. With a strong foundation, a talented team, and a clear vision for the future, Dezerv is well-positioned to play a leading role in the wealth management industry and to help its clients achieve long-term financial success.

The ESOP buyback program is just one example of how Dezerv is fostering a strong culture of collaboration and commitment among its employees. As the company moves forward, it will continue to focus on aligning its values with the needs of its team and clients, ensuring that it remains a leader in the wealth management space for years to come.