Exclusive: DealShare expands ESOP pool to Rs 455 Cr

Grocery and essentials focused social commerce startup DealShare has expanded its employee stock options (ESOPs) pool by a significant margin. With this move, it joins the list of more than a dozen startups that have expanded their ESOP pool size this year.

The board at DealShare passed a special resolution to increase the existing ESOP pool from 11,492 options to 20,192 options, regulatory filings show. Each option is convertible into 1 equity share of Re 1 with the total quantum of the pool valued at Rs 455.05 crore or $60 million.

The Tiger Global-backed company turned unicorn in January followed by a top up round in the month after. So far, it has raised $393 million and was valued at $1.7 billion during its last fundraise.

Jaipur-based DealShare is an inventory-led platform that manages the supply chain and logistics in bigger cities. It operates in over 100 cities and claims to have catered to over 1.5 crore customers with its B2B2C hyperlocal e-retail business model.

The company also passed a special resolution to alter its Memorandum of Association, adding another object clause. This clause states that the company will carry on the business of manufacturing products under brands owned by DealShare whether through in-house facilities or contract manufacturing arrangements, in various categories, such as but not limited to “food, personal care, home care products and general merchandise in India.”

As of now, DealShare primarily engages in wholesale trade of FMCG goods and procurement of stock in trade. The company’s direct competitors include CityMall, Superstore by Meesho and a few others.

While DealShare is yet to file its annual financial statements for FY22, the company’s revenue from operations surged by 312% to Rs 236.8 crore during FY21 from Rs 57.4 crore in FY20, its annual statements with RoC show. The company’s annual losses grew by 101.8% YoY to Rs 67.03 crore during the same period.

Earlier this month, brokerage-free real estate platform NoBroker added Rs 100 worth options to its ESOP pool. LEAP, Wiz Freight, Ather Energy, Ninjacart, Ecom Express, Pine Labs and VeGrow also expanded their ESOP pool in 2022. Apart from expansion, around 20 startups across their early and growth stage have bought back ESOP worth $175 million held by their employees in 2022 so far. When compared, the amount was $440 million in 2021.