IPO frenzy mints billion-dollar Esop windfall for startup staff

The surge in IPOs in 2025 turned employee stock options from largely notional rewards into real wealth, with startup employees cashing out a record $1 billion through public listings.

- Priyamvada C.

Data analysed by equity management platform Qapita shows that 16 startups went for mainboard IPO this year, enabling employees to monetise Esops worth a cumulative $1 billion. This compares with $807 million unlocked across 10 startups in 2024 and just $39 million across four startups in 2023.

Much of this employee wealth creation was driven by listings of consumer and fintech startups such as Meesho, Groww, Urban Company, Pine Labs and PhysicsWallah, which together accounted for a significant share of Esop monetisation during the year, the data showed.

The listings converted years of option grants and vesting into tangible wealth for startup employees across levels.

The 2025 data shows Esops in private companies have moved from "paper wealth" to a proven, large scale monetization channel, said Tanmay Shah, Qapita's head of liquidity programs. "10,000 employees (in private companies) saw liquidity via buybacks and many more via IPO exits, allow startups to reward and retain employees while offering senior management a chance to book profits at a later stage, especially during public listings. This year, however, buybacks played a smaller role as public markets emerged as the most attractive exit route for startup talent.