Udaan announces ESOP takeover programme for Rs175 crore

CIOReviewIndia Team | Thursday, 29 April 2021, 11:34 IST

  • No Image

Udaan announces ESOP takeover programme for Rs175 croreownership plan (ESOP) liquidity programme worth Rs165-175 crore for its employees, stated a person familiar with the matter.

In an internal communication to employees on Thursday morning, co-founders Amod Malviya, Sujeet Kumar and Vaibhav Gupta stated as the company turns five, leading investors have shown interest in participating in its organizational journey ahead through a secondary stock buyout programme.

“We want to take this opportunity to reward our employees who have worked relentlessly over the last many months and years with a meaningful wealth creation opportunity through an ESOP liquidity programme 2021," the co-founders stated.

All employees, who are not serving notice period and who have vested stock as on 31 March 2021, will be eligible to participate in the programme.

"Over the years, our employees have worked relentlessly to transform the way trade is done in the country and empowering businesses of Bharat. We want to take this opportunity to reward our employees for their continuous effort and significant contribution with a meaningful wealth creation opportunity through an ESOP liquidity programme. We would like to thank them for their resilience and dedication to their jobs in these unprecedented times," stated an Udaan spokesperson.

The Bengaluru-based startup earlier this year raised $280 million from new investors Moonstone Capital Partners and Octahedron Capital, besides existing investors Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital and Tencent Holdings, the company stated. The funding round valued it at a shade over $3 billion.

Several startups, including Unacademy, Zerodha, CarDekho, BharatPe, Meesho, and Swiggy announced ESOP buybacks in 2020, which assumed more significance in a year where many Indian startups witnessed a financial crunch amid the covid-19 pandemic.

In March, payment solutions startup Razorpay announced its third employee stock ownership plan (ESOP) buyback worth $10 million or Rs73 crore for 750 existing and former employees. Sequoia Capital India and GIC, two of Razorpay’s key investors, will be the buyers in this process, the company stated.

🍪 Do you like cookies?

We use cookies to ensure you get the best experience on our website. Read more...