Urban Company announces ESOP sale programme worth $5M
Home services startup, formerly known as UrbanClap, has announced an employee stock option (ESOP) sale plan worth $5 million with the purchaser being its existing investor Vy Capital.
Under this programme, the eligible employees will be given the option to liquidate their vested ESOPs through a secondary transaction by Vy Capital, according to a press release issued by the company. Around 180 employees are eligible to participate in this programme, Urban Company said.
This is third ESOP purchase programme by Urban Company with previous two held in June 2017 and December 2018.
UrbanClap founders (from left to right): Abhiraj, Raghav and Varun
Urban Company co-founder Abhiraj Singh Bhal said,
“Approximately 450 employees, or 40 percent of the company's full-time employees have ESOPs from customer service representatives to our SVPs.”
The latest sale values each ESOP at Rs 1,10,000, which the company said is the same price as the Series E secondary transaction, which took place in June 2019. Its first ESOP sale event occurred in June 2017, coinciding with the Series C round of funding, and valued each share at Rs 24,500.
The second ESOP sale event occurred in December 2018, valuing each share at Rs 61,864 and this coincided with the Series D round of funding. To date, the company has awarded ESOPs to 670 employees, including 450 current employees.
Urban Company said employees are awarded ESOPs at the time of recruitment, during an appraisal cycle, and as part of various internal recognition programmes. It said the objective is to provide ownership and economic rewards to those who are contributing to the company’s success and to use it as an instrument to attract and retain top talent.
Founded in November 2014, the company has its presence at 18 cities in India, Dubai, Abu Dhabi, Sydney, and Singapore. It offers services such as beauty and spa at home, cleaning, plumbing, carpentry, appliance repair, painting, etc., through its mobile app and website.