Hissa has announced the launch of Hissa Fund I, a $35 Mn investment vehicle to address liquidity issues in India’s ESOP market
The fund is designed to enable employees of growth-stage startups to convert their vested stock options into cash
Hissa is a platform offered by Bengaluru-based Rulezero that manages ownership data of companies
Equity management platform Hissa has announced the launch of Hissa Fund I, a $35 Mn investment vehicle to address liquidity issues in India’s ESOP market.
The fund is designed to enable employees of growth-stage startups to convert their vested stock options into cash, offering an alternative to the long wait for exits via IPOs or acquisitions.
Founded in 2019 by Satish Mugulavalli and Srinivas Katta, Hissa is a platform offered by Bengaluru-based Rulezero that manages ownership data of companies, automates share issuance processes and ESOPs, provides mechanisms to track and certify cap tables and manage transactions.
According to Mugulavalli, founder of Rulezero and managing partner of Hissa, Indian startups typically remain private for 10-12 years, leaving employees with valuable but illiquid stock options.
He says that Hissa Fund I, a SEBI-registered Category II Alternative Investment Fund (AIF), provides a secondary transaction platform with T+5 settlement cycles, enabling employees to access funds for personal milestones.
“The idea is simple: if an employee earns INR 100 in salary and INR 50 in options, we allow them to liquidate a small portion of those options periodically. This builds trust in the value of their equity without making them feel the need to leave prematurely,” Mugulavalli told Inc42.
The fund will focus on 15-20 high-potential startups, working with founders to align liquidity events with business growth and talent retention strategies. This approach allows companies to leverage ESOPs as tools for attracting and retaining top talent.
“We target growth-stage companies—typically Series B or later—and purchase employee shares,” Mugulavalli told Inc42. According to him, this provides liquidity while allowing companies to retain talent without incurring high compensation costs.
The fund’s inaugural transaction was with AI robotics company Miko, providing liquidity to 32 employees.
Mugulavalli further shared that about 28–30% of the fund has been closed, primarily from domestic founders and HNIs. He expects to close it by the end of 2025.
