News · Financial Services
DMI Finance expands ESOP pool to retain talent
By Startup Enthusiast ·
- Date
- Company
- DMI Finance
- What it does
- Digital lending platform
- Kind
- News
- Amount
- ₹306.6 crore (~$36 million)
- Founded
- 2008
- Sector
- Financial Services
What they do
DMI Finance is a digital lending platform offering consumption, personal, and MSME loans
What happened
It added 11.8 million stock options worth ₹306.6 crore to its ESOP pool, total now 34.4 million options
Why it matters
The move aims to retain and incentivize talent as the company accelerates growth after a regulatory pause
The details
- DMI Finance has expanded its employee stock option pool (ESOP pool, a set of shares reserved for employees to buy at a fixed price) under the DMI ESOP Plan 2018.
- The company added 11.8 million new options, bringing the total to 34.4 million options.
- The new options are valued at ₹306.6 crore (~$36 million), and the entire pool is now worth ₹892 crore (~$105 million).
- The expansion is meant to retain and incentivize talent and support the company's growth plans.
- DMI Finance's last funding round was $400 million (primary and secondary sale), led by MUFG Bank of Japan.
- The company also inducted two independent directors: Arjun Malhotra and Tammir Amr.
- In October 2024, the RBI temporarily prohibited DMI from disbursing loans for non-adherence to pricing norms; the restriction was lifted in January 2025.
The bigger picture
- The ESOP expansion signals DMI's focus on retaining key employees after a regulatory setback.
- The company has shown strong financial growth, with FY24 operating revenue of ₹2,654 crore (60%+ YoY growth) and profit of ₹397 crore.
- DMI's digital distribution partnerships with Samsung, Google Pay, and Airtel give it wide embedded finance reach across India.
About the business
- DMI Finance offers consumption loans, personal loans, and MSME loans (loans to micro, small, and medium enterprises).
- It distributes loans digitally through partners like Samsung, Google Pay, and Airtel (embedded finance, where loans are offered within other apps).
- The company was founded in 2008.
- In FY24, DMI reported operating revenue of ₹2,654 crore and profit of ₹397 crore.
What happens next
- The ESOP expansion is intended to retain and incentivize talent and expedite growth.
The deal
- Type
- ESOP expansion
Founders
- Shivashish Chatterjee, Founder
- Yuvraja C Singh, Founder