Home service marketplace Urban Company has announced a Stock Ownership Plan (PSOP) for its service providers. Under this initiative, the Gurugram-based company will award stocks worth Rs 150 crore or $19.8 million to thousands of service partners over the next 5-7 years.
The company will set up an evergreen trust to manage the PSOP plan, and award them at near zero cost to service partners. Urban Company has already got board approval for the first tranche of Rs 75 crore worth of stocks, to be disbursed over the next 3-4 years, it said in a press release.
This is the second instance when a growth stage startup is offering stock options to its partners. In July last year, edtech company Unacademy had announced $40 million worth stock options to teachers on its platform.
According to the company, the entire process will be rule based and transparent, with an advisory panel providing overall guidance. Urban Company offers services such as beauty and spa at home, cleaning, plumbing, carpentry, appliance repair and painting through its mobile app and website.
In December, the company had concluded an ESOP buyback program worth Rs 55 crore or $7.3 million. It was the fourth ESOP liquidity program completed by the the eight-year-old firm.