MyGate valuation touches $170 Mn in last round; initiates share buyback program

Security management and convenience service for gated apartments, MyGate had initiated a buyback program to lead a reduction in outstanding equity shares.

The company reasoned that the buyback will reduce the outstanding equity share capital which is considered necessary for optimising returns for shareholders and overall enhanced share value. 

As per regulatory filings, the Bengaluru-based company had approved to buy out a total of 132,320 equity shares worth Rs 37.2 crore.

MyGate’s co-founders Vijay Kumar Arisetty, Shreyans Daga and Abhishek Kumar collectively tendered 34,668 equity shares for buyback. Arisetty sold shares worth Rs 3.26 crore, while Daga and Kumar offloaded equity shares worth Rs 3.22 crore each.

Post buyback, Arisetty remains the largest individual stakeholder controlling 14.8% stake while Daga and Kumar own a single digital stake of 5.73% and 5.5% respectively.

This move was set in place right after MyGate closed its mega Series B funding round, where 10.95 lakh Series B CCPS were allotted to seven different investors to raise Rs 377.51 crore. Fintrackr's calculation estimates that the company was valued at around $170 million~ Rs 1265 crore (post money).

After the allotment, MyGate’s early backers, Prime Venture Partners remains the majority stakeholder holding 25% worth $42.13 million, followed by Monteverdi International Limited, which led the Series B round with an infusion of $19.1 million.This Mauritius based entity controls  22.23% of the capital, valued around $37.45 million.

The company’s ESOP schemes constitute 7.25% stake worth $12.22 million. A separate regulatory filings reflects that the company has allotted employees stock options or ESOP equity shares to an ex-employee, Vivek Aditya. Aditya has recently started his own startup named Zelish in April this year.

The four-year-old MyGate provides security software solutions along with helping in managing society accounting, payments from residents and help desks. During the Covid-19 hit lockdown, the platform had tied up with various service providers and e-commerce platforms such as Box8, StoreSe, Grofers, Medlife, and mfine to ensure safe deliveries of products and services at home. 

At present, it claims to have been used by over 2 million homes across 10,000 societies in the country.

While MyGate is yet to file its financial results for the year ending March 2020, the company had registered 3.9X growth in operating revenue in FY19 to Rs 5.83 crore from Rs 1.51 crore in FY18. It spent Rs 1.13 crore on advertisement and promotions in FY19 with net loss of Rs 25.33 crore.