Logistics startup Shadowfax rolls out $5M ESOP buyback plan, appoints new co-founders
Bengaluru-based logistics startuphas announced an employee stock ownership(ESOP) buyback programme for its employees.
The logistics startup also appointed Praharsh Chandra and Gaurav Jaithliya as its co-founders, effective December 2020.
Co-founder and CEO Abhishek Bansal said: "I have known Praharsh and Gaurav for over a decade now and their vision and commitment towards driving the organisation forward has been exemplary. Both of them are key members of the leadership group and have been instrumental in helping us scale new heights. Their elevation to co-founders is a very organic next step for our success and in recognition of their invaluable contribution, as we look ahead to set new benchmarks. Gaurav and Praharsh will continue to add strategic might to our leadership team, as we take on new challenges in 2021 and beyond.”
Both Praharsh and Gaurav have been part of the leadership team at Shadowfax since its inception. They have been serving as the Chief of Operations and Chief of Strategy and Investment, respectively.
According to a statement issued by the startup, the ESOP buyback programme is estimated at $5 million and is aimed towards rewarding its employees as the business recovers to pre-COVID-19 levels.
This is the first buyback offering by Shadowfax. Under this programme, eligible employees can sell up to 35 percent of their assigned or vested ESOP shares. Shadowfax employees who have been granted ESOPs and completed more than four years with the company will be eligible to participate in the buyback programme.
Team at Shadowfax
Abhishek said, "The ESOP buyback is our way of reciprocating their(employees') efforts and we envisage that it will help unlock value and create wealth for our people. It is because of our team and their strong resolve in the company's vision, we have excelled in an intensely competitive environment and gained substantial impetus in the logistics industry in a short span of time.”
Abhishek further added that although 2020 has been a challenging year, Shadowfax was able to grow 2X compared to pre-COVID levels.
Founded in 2015, Shadowfax has so far raised $100 million from marquee investors including Qualcomm Ventures, NGP Capital and Eight Roads Ventures, among others. The startup services more than 500 cities, covering 7,000 plus pincodes, and more than 150,000 delivery network partners. According to Shadowfax, it delivers 500,000 plus orders every day.,