Online used car marketplace CARS24 to buyback ESOPs worth Rs 35 Cr
Online used car marketplaceon Wednesday said it is offering ESOPs cash-out scheme worth Rs 35 crore to its employees.
"CARS24 brings cheer to its employees this festive season by offering to buy up to 100 percent ESOPs worth Rs 35 crore. The initiative has been announced keeping in mind the support and trust that the employees showcased in the company during the difficult times," a statement said.
Earlier this year, CARS24 had offered fully-vested ESOPs (employee stock ownership plan) to its employees, equal to the salary deduction they chose voluntarily.
CARS24 is now offering 3.3X more value of contribution made by employees during voluntary salary deduction, the statement said, adding that employees can liquidate 100 percent of ESOPs granted against salary deduction.
Besides, employees also have an option to cash out 30 percent of vested stocks issued earlier.
"2020 has been a difficult year for everybody with a lot of employees stepping in and contributing across the company. The ESOPs will help our employees enjoy the bonus and extra liquidity during the festive season after facing a tough time during the pandemic," CARS24 CEO and Co-founder Vikram Chopra said.
Since its inception, this is the third time the company is undertaking a liquidation event for employee stocks, the statement said.
CARS24 is backed by investors like Sequoia India, Exor Seeds, Apoletto, Kingsway Capital, KCK, Unbound, and Moore Strategic Ventures.
Last year in October, the startup raised $100 million as part of its Series D round of funding from Unbound, a London-based global investment firm, and New York-based Moore Strategic Ventures. The company's existing investors – KCK, Agnelli (Fiat) Family and Sequoia India, also participated in the said round.
In August 2019, as part of its Series D round, the pre-owned car company announced a strategic partnership with the former captain of the Indian cricket team, Mahendra Singh Dhoni as its brand ambassador and one of the investors in the company.
Founded by FabFurnish founders Vikram Chopra and Mehul Agrawal, Cars24 follows a customer-to-business (C2B) model. It buys cars from individuals and sells them to dealers. Unlike a classified platform, Cars24 enables end-to-end transactions and charges commission for each transaction.
(Disclaimer: Additional background information has been added to this PTI copy for context)