Urban Company concludes ESOP buyback at $2.8 Bn valuation
Urban Company, a home service marketplace, has completed an ESOP repurchase scheme of Rs 55 crore ($7.3 million). Since its start, the Gurugram-based firm has undertaken four ESOP liquidity programmes.According to Urban Company, the most recent acquisition was completed at a $2.8 billion valuation. The buyback isn’t very large, but it stands out since it represents a 33.33 percent premium over the stock’s final valuation six months ago.During its $255 million Series F round in June, it was valued at $2.1 billion.In a blog post, Urban Company stated that all current and former employees with vested ESOPs were eligible to participate in the programme, with the opportunity to sell up to 100% of their vested ESOPs.
Across the four initiatives, Urban Company has facilitated ESOP sales of Rs 100 crore for its 940 current and ex-employees. 550 employees were qualified to participate in the transaction since they possessed vested ESOPs. In June 2017, the business held its first ESOPs repurchase, which was followed by a second in December 2018 and a third in August 2020.
Only a few weeks ago, the company run by Abhraj Singh Bhal completed a new issuance of equity shares under its ESOPs plan to 181 employees, including a number of past and current top-level executives.
Urban Company is one of a slew of early-stage and late-stage startups that will be able to cash out their ESOPs in 2021. Vedantu, Meesho, Browserstack, Udaan, Unacademy, ShareChat, Razorpay, CRED, MPL, Licious, Classplus, and HealthifyMe are among the companies on the list.In many businesses, 2021 has also seen a considerably more lenient approach to all employees, both current and former, when it comes to vesting of ESOPs. This is shown not only in the frequency of liquidity events, but also in the favorable terms offered to the majority of employees, including former employees.Urban Company and MyStartupEquity, a cap table and ESOP management tool from LetsVenture, unveiled an open-source ESOP architecture earlier this year. The framework pushes for improved ESOP policies, as well as structuring terms and conditions.
Urban Company defied the trend of shrinking enterprises in FY21, increasing operating income by 13.3% to Rs 247.7 crore from Rs 218.6 crore in FY20. During the same time span, the company’s losses increased by 61% to Rs 249.3 crore in the previous fiscal year, compared to Rs 155.2 crore in FY20.
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