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Automobiles24’s ESOP cash-out scheme for its workers is value INR 35 Cr
Swiggy and Meesho have additionally initiated an ESOP liquidation program value round $7-9 Mn and $5 Mn respectively
A number of Indian startups comparable to Unacademy, Zerodha, CarDekho, BharatPe, Vy Capital and Cell Premier League have introduced ESOP buybacks this yr
On-line used automotive market Automobiles24 has joined foodtech unicorn Swiggy and on-line reseller community Meesho in providing an ESOP (worker inventory possession plan) cash-out scheme value INR 35 Cr to its workers.
“Cars24 brings cheer to its employees this festive season by offering to buy up to 100% ESOPs worth INR 35 Cr. The initiative has been announced keeping in mind the support and trust that the employees showcased in the company during the difficult times,” an announcement by the corporate revealed.
Whereas Swiggy’s ESOP liquidation program was value round INR 51-66 Cr, Meesho’s was pegged round INR 37 Cr.
Earlier this yr, Automobiles24 had provided fully-vested ESOPs to its workers, equal to the wage deduction they selected voluntarily.
The present provide by Automobiles24 is of three.3X extra worth of the contribution made by workers throughout voluntary wage deduction, the assertion stated, including that workers can liquidate 100% of ESOPs granted towards wage deduction. In addition to, workers even have an choice to money out 30% of vested shares issued earlier.
“2020 has been a difficult year for everybody with a lot of employees stepping in and contributing across the company. The ESOPs will help our employees enjoy the bonus and extra liquidity during the festive season after facing a tough time during the pandemic,” Automobiles24 CEO and cofounder Vikram Chopra stated.
Since its inception, that is the third time the corporate is enterprise a liquidation occasion for worker shares.
Automobiles24 is backed by traders like Sequoia India, Exor Seeds, Apoletto, Kingsway Capital, KCK, Unbound, and Moore Strategic Ventures.
Automobiles24, Swiggy and Meesho have joined a number of Indian startups who’ve initiated ESOP liquidation or buyback packages this yr.
Final month, Bengaluru-based edtech platform and one of many newest entrants within the Indian unicorn membership, Unacademy, introduced an ESOP buyback program value INR 25-30 Cr, which can happen in December this yr.
A number of Indian startups comparable to Zerodha, CarDekho, BharatPe, Vy Capital and Cell Premier League (MPL) have introduced ESOP buybacks this yr. The buybacks assume extra significance once they occur in a yr the place many Indian startups have witnessed a monetary crunch amid the Covid-19 pandemic.
Why Startups Are More and more Eager On ESOP Buybacks
Not too long ago, many startups have given ESOPs to their workers to be able to retain expertise and incentivise financially. “In the past, founders have often encashed some of their stock holdings during higher series investments. But ESOP encashment for employees has become popular only recently,” the founding father of Thinvent Applied sciences and enterprise guide Saurabh Jain informed Inc42.
ESOP buybacks is a comparatively current phenomenon with startups. The pattern began in 2018 when Flipkart introduced a 100% buyback choice of vested ESOPs. “It helps startups to garner experienced people from the market & also motivate its own employee by retaining good talents in the company,” Noida-based monetary advisor Harsh Chaturvedi informed Inc42.
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