Hissa Launches USD 35 Mn ESOP-Focused Fund to Unlock Startup Employee Wealth This SEBI-registered Category II Alternative Investment Fund (AIF) addresses a common challenge faced by employees holding vested stock options—waiting for years until IPOs or acquisitions for liquidity.

Hissa, an equity management platform, has launched Hissa Fund I, a USD 35 million initiative aimed at transforming employee stock ownership plans (ESOPs) into real financial opportunities for startup employees.

This SEBI-registered Category II Alternative Investment Fund (AIF) addresses a common challenge faced by employees holding vested stock options—waiting for years until IPOs or acquisitions for liquidity.

"Our mission is to make equity ownership meaningful for everyone involved," said Satish Mugulavalli, Co-Founder of Rulezero and Managing Partner of Hissa Fund. "This fund goes beyond liquidity—it redefines ESOPs as tools that empower employees and drive long-term innovation."

The fund, targeting 15-20 growth-stage startups, enables liquidity with T+5 settlement cycles. It collaborates with founders to align liquidity events with talent retention and business strategies, ensuring a balanced approach to employee benefits and company growth.

Hissa, launched in 2019 by Mugulavalli and Srinivas Katta, is a Rulezero initiative that automates ownership management, including share issuance, stock tracking, and transaction processing.

The fund recently debuted with an investment in Miko, an AI-powered robotics company. This transaction provided liquidity to 32 employees, allowing them to unlock the value of their equity.

Sneh Vaswani, CEO of Miko, said, "Hissa Fund has given our employees the chance to realise the value of their hard-earned equity. This not only recognises their contributions but also reinforces their role in our journey toward global impact."

Hissa Fund I sets a new benchmark for ESOP liquidity, empowering employees while fostering innovation in India's startup ecosystem.