Urban Company has announced its fifth Employee Stock Ownership Plan (ESOP) sale, with a total secondary transaction amount of about ₹203 crore. 446 employees are participating in the program. Beneficiary employees are between the age group 20 and 60, with 28 per cent of them being women.

This sale is said to give the company’s current and former employees an opportunity to liquidate their vested stocks. Dharana Capital (An offshoot of existing investor Vy Capital), along with existing investors Vy Capital and Prosus will be purchasing these shares from employees and former employees.

“At Urban Company, we use ESOPs as a wealth creation tool to retain and reward our talent. While ESOPs are awarded in a broad based fashion across mid-to-senior level employees, the quantum is skewed towards critical roles and high performing team members. Apart from the initial ESOP grant at the time of joining, our team members also get refresh grants based on performance. We have actively pursued secondary sales opportunities for our team members, to establish ESOPs as a credible wealth creation asset.

It is exciting to see that about 450 employees and ex-employees had the opportunity to participate in the ongoing ESOP secondary sale program amounting to ₹203 crore. It reposes the faith in our ESOP program, which we are keen to strengthen and grow in the times to come.” said Raghav Chandra, Co-founder & CPTO, Urban Company.

To date, Urban Company claims to have granted ESOPs to 1593 employees and ex-employees. Of these, 784 employees and ex-employees have participated in 5 secondary ESOP sale programs, liquidating ESOPs worth ₹306 crore. The company has awarded 11% of its current fully diluted cap table as ESOPs, encompassing vested, unvested, and sold ESOPs.

(With inputs from BL Intern Nivasini Azagappan)

Related Topics