UrbanClap

UrbanClap employees earn $2-2.5 million via ESOP sales

UrbanClap

UrbanClap, an on-demand home service provider, recently raised a $50 million funding round from Steadview Capital and Vy Capital at $500 million valuation. As a part of this round, the company has facilitated a secondary sale of ESOPs that will allow the employees to earn about $2-2.5 million (Rs 14-18 crore).

Several employees are expected to turn crorepatis post this transaction.

Up until last year, when the Abhiraj Singh Bhal led company had made another ESOP sale, it was reported that ESOPs comprised of 6 per cent of the shares of the company. Out of these 0.2 per cent shares are now sold to Steadview and Vy, which have additionally picked up shares worth $1.5 million from early HNI investors.

In this secondary transaction, 50 per cent of the ESOP holders chose to encash their stakes, and have earned up to Rs 1 crore (as the plan limits). Through the deal the employees made approximately 40X capital gains, reports ET.

The price of ESOPs was Rs 1,500 and the value at which each share is sold is Rs 62,000. Earlier, in the last ESOP sale, this value stood at Rs 24,000. This implies that the company’s value has grown 2.6X in the past 1 and a half year.

Earlier, ESOP sales in the startup ecosystem were a rare scenario, but with time and maturity, this year has seen several such events. Paytm and Rivigo are prime examples of the same.

Paytm has allowed ESOP sales worth more than $47 million, and Rivigo’s employees took away Rs 71 crore from similar encashment process. The latter’s ESOP sale, however, was different as there was no bar for how much an employee could take away.

Of late, Droom and Razorpay employees also benefitted through ESOPs while budget hotel chain OYO’s board permitted the company to add 2,000 more stock options to its ESOP.

Overall, ESOP encashment is always a welcome news signifying maturity of the ecosystem. Some employees get their due rewards, and for the rest, such events become an inspiration to work harder.

UrbanClap

UrbanClap employees earn $2-2.5 million via ESOP sales

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