Indian startup ESOP buybacks hit record in Q1 2026

The details

• In Q1 2026, Indian startups bought back employee stock options (ESOPs) worth about $220 million across seven companies.
• This amount surpassed the full-year totals for both 2024 and 2025.
• BrowserStack led the quarter with a $125 million share buyback, with about 500 employees eligible.
• Innovaccer completed a $75 million ESOP buyback.
• CoinDCX repurchased ESOPs worth $12 million.
• Unacademy rolled out a Rs 50 crore (about $5.5 million) buyback, benefiting many employees.
• Other participants included Emversity, Atlys, Cashfree, and Kratikal.
• The total ESOP buybacks since 2020 reached nearly $2 billion.

The bigger picture

• The Q1 2026 buyback value exceeded the entire 2025 total of just over $75 million and the 2024 total of about $190 million.
• This surge indicates a recovery from the 2023 high of $802 million (which included a large Flipkart liquidity event).
• The record quarter signals growing confidence among startups and investors in the current market.
• Buybacks are seen as a way to reward employee loyalty and provide liquidity without new funding.
• The regulatory environment remains stable, with no changes to ESOP taxation in the 2026 Union Budget.

About the business

• BrowserStack provides a cloud platform for software testing, allowing developers to test websites and apps across different browsers and operating systems.
• The company serves developers and enterprises worldwide, offering instant access to a range of devices and browsers.
• It generates revenue through subscription plans for individuals and teams.
• BrowserStack has raised funding from early backers like Accel.
• Innovaccer offers a healthcare data platform that aggregates and analyzes patient data for providers.
• CoinDCX is a cryptocurrency exchange in India, enabling users to buy, sell, and trade digital assets.
• Unacademy is an edtech platform providing online courses and educational content, now part of upGrad.
• Other participants like Cashfree provide payment processing solutions, while Atlys simplifies visa applications.

The deal

Type

ESOP buyback

Investors

• Accel (investor) — Early backer of BrowserStack, allocated remaining portion of the buyback.

More on BrowserStack

• BrowserStack announces $125 million employee buyback12 January 2026 · Milestone · $125 million

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