Funding Societies launches $16m ESOP buyback program

Singapore-based Funding Societies, a financing platform for small and medium-sized enterprises, announced a US$16 million ESOP buyback program for its existing and former employees. This is the company’s fourth such program, with its employees previously cashing out a total of US$3.5 million in ESOPs.

Kelvin Teo, the co-founder and director of Funding Societies / Photo credit: Funding Societies

Under the buyback, all eligible workers will have the option of selling their shares at no discount to Funding Societies at its series C+ preference share price. The shares will then be sold to incoming investors.

According to the company, the program stands in contrast to other such efforts in the industry, which usually slash share prices by 20%. The firm’s employees can also keep their ESOP or convert them into shares.

Funding Societies, known as Modalku in Indonesia, said it currently offers 50% of a new hire’s total annual salary in ESOP allotments, provided they are eligible. Loyal staff, meanwhile, are entitled to ESOP on every two-year anniversary of them joining the company.

This ESOP allotment scheme has resulted in over 120 current and former employees receiving cash rewards from Funding Societies’ share buyback programs.

“Even before our series C+ round, I am also pleased to report that 2021 saw the lowest employee attrition rate and the highest employee happiness scores since Funding Societies was founded,” said Kelvin Teo, co-founder and group CEO of Funding Societies.

The announcement of the buyback comes after Funding Societies raised US$144 million in its series C+ equity funding round, which was led by SoftBank Vision Fund 2. The round also included US$150 million in debt lines from institutional lenders across Europe, Asia, and the US.

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