ESOP Pool topped by Tiger Global Backed Urban Company, Adds option worth $17 Mn
- ByStartupStory | March 23, 2022
ESOP pool expanded by Gurugram-based hyperlocal services unicorn Urban Company. New ESOP options are being added by the startup worth close to $17 Mn (INR 130 Cr) to its existing ESOP Scheme.
The startup is adding 3,832 ESOP options to its ESOP Scheme 2015 in order to expand this pool size, as per company’s regulatory filing. However, after this new top up it is still unknown what would be Urban Company’s total ESOP pool size.
Immediately after it announced a new ESOP scheme – Partner Stock Ownership Plan (PSOP) for its services provider, the new development came in. Earlier this month, Urban Company said that it will be rewarding thousands of its service partners with INR 150 Cr stock options, under the PSOP scheme.
Plans of setting up an evergreen trust to manage the PSOP plan, and award them at near zero cost to service partners has also been announced by the startup. Approval for the first tranche of INR 75 Cr worth of stocks, to be disbursed over the next 3-4 years has also been received from the board.
The consumer services unicorn had announced its fourth ESOP buyback worth INR 55 Cr just in December last year, thus taking the total ESOP buyback conducted to INR 100 Cr by the company. The startup’s existing institutional investors had bought the shares during the fourth round of ESOP buyback. This exercise further helped Urban Company’s valuation soar to worth $2.8 Bn.
Urban Company is a tech-enabled home services marketplace, founded in late 2014 by Abhiraj Bhal, Raghav Chandra, and Varun Khaitan. It offers services such as beauty and spa at home, cleaning, appliance repair, plumbing, carpentry, painting through its mobile app and website. It operates in over 50 cities in India, Singapore, Australia, the UAE, and The Kingdom of Saudi Arabia.
Last year in June when it had raised $255 Mn in its Series F round led by Prosus Ventures, Dragoneer and Wellington Management, the startup entered the unicorn club. The participation from Tiger Global and Steadview was also seen in the round, which helped its valuation soar to $2.2 Bn.
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