ESOP buybacks, liquidity, and payout programs were a common trend during 2021 to 2022, a period widely seen as a golden phase for Indian startups due to strong venture capital inflows. However, the momentum began to slow in 2023 in terms of the number of buybacks and declined further in 2024 and 2025 in terms of total value.
2026 has opened on a strong note. ESOP buybacks in the first quarter alone have already surpassed the full-year figures recorded in both 2024 and 2025.
According to data compiled by Entrackr, seven startups have collectively bought back ESOPs worth nearly $220 million in Q1 2026. In comparison, buyback, liquidity, and payout activity remained subdued in 2025 at just over $75 million. The total value stood at around $190 million in 2024, well below the $802 million recorded in 2023, $440 million in 2021, and $200 million in 2022.