GoKwik’s ESOP Rulebook and Unacademy’s New CEO: What’s Really at Stake?

GoKwik’s ESOP Handcuffs: When Stock Turns into a Trap

Imagine spending years at a company, slogging through late-night deploys, believing that one day your ESOPs will pay off. Then, just as you start considering a move, you find out: if you join a competitor, even two years after leaving, you can lose your unvested and vested-but-unexercised options. No, this isn’t some Silicon Valley horror story. This is exactly what GoKwik decided to roll out, and it’s got people talking.

Let’s be clear: non-compete clauses in employment contracts aren’t new, though they tend to be a bit of legal theatre in India, rarely enforced. But making equity, the very thing people sweat for, contingent on where you work next? That’s a whole different ballgame. GoKwik has named names too: Razorpay, Shiprocket, CRED and six other specific competitors are on the no-go list. Leave for one of them, or even advise or invest in them, and see your options vanish. The rule applies retroactively to previous grants as well, not just new ones.

The result? If you’ve built up a tidy nest egg of stock, there’s now a sword hanging over your next career move. For those considering roles at fast-growing rivals or looking to invest in the sector, the risk of forfeiting ESOPs is now a significant factor. This isn’t just a policy tweak, it’s a massive bet that people care more about stock than about their next opportunity. But here’s the tricky part: people hate feeling boxed in, especially in startups, where the whole selling point is growth and freedom. It’s like working on a project for months, only to find out you’ll only get your bonus if you don’t join a certain project team afterward. Feels less like a reward, more like a shackle.

There’s another angle: legal. While non-competes show up all the time, actually taking back equity for joining a competitor is rare. If someone challenges this in court, it could get messy. The very idea of using earned stock as a stick rather than a carrot, especially when the startup world relies so much on trust, could backfire. People might start wondering if their next payout is one HR memo away from vaporizing. Combine that with not-so-distant layoffs and leadership exits at GoKwik, and you can see why people might be anxious.

Unacademy’s CEO Change: New Face, Same Problems?

While GoKwik is locking down its equity, Unacademy is having a changing of the guard. Gaurav Munjal, who’s been the public face of Unacademy for years, is stepping away from the CEO chair just two months after upGrad acquired the company. He’s not leaving, though, he moves to the executive chairman role, now focused on shepherding upGrad’s IPO.

This move isn’t out of the blue. Unacademy had its glory days during the pandemic, when investors couldn’t get enough edtech. But once schools reopened, the tide turned. Monetization got harder, operational losses started to pile up, and suddenly, the rocketship felt a lot heavier. Munjal passing the baton to Akhilendra Kumar (the chief business officer until now) is more than just a title swap. It signals a shift in strategy, maybe even a bit of a reset, as Unacademy tries to find its place inside the larger upGrad universe and fix its business model headaches.

The entire sector is watching. For years, edtech was the darling of Indian startups. Overnight, the fundamental assumptions changed. Now, the question is whether new leadership can steady the ship or if the problems run deeper than who’s at the helm.

What Do These Moves Really Mean?

Both stories, GoKwik’s hardline ESOP terms and Unacademy’s CEO handover, point to the same underlying thing: startups are under pressure, and the old playbook isn’t working like it used to. When companies start treating employee equity like a leash instead of a reward, or swap out founders for new faces after a big acquisition, you can sense the anxiety about retaining talent, trust, and direction.

Here’s the real question: are these moves the start of a new, tougher phase for Indian startups, or will backlash force a rethink? After all, a company’s culture is shaped as much by how it handles departures as by how it celebrates arrivals. In the chase for growth and survival, it’s easy to forget that. Maybe not for long.

Source: https://inc42.com/buzz/gokwiks-esop-twist-new-ceo-at-unacademy-more/