Edtech startup SpeakX announces $1 Mn ESOP buyback for 15 employees

Edtech company SpeakX (formerly Yellow Class) has launched its first ESOP buyback program worth $1 million, offering early liquidity to employees. 

According to the company, 15 out of its 20 employees will benefit from the buyback.

The buyback comes on the heels of SpeakX’s recent $16 million pre-Series B round which includes performance-linked stock grants, tenure-based allocation, and a long-term ownership structure. Employees who complete two years at the company receive ESOPs with a 10-year exercise window, and grants extend across all departments instead of being limited to senior roles. 

Till date, SpeakX had raised a total of $23.3 million which includes$1.3 million in seed funding led by India Quotient and then a $6 million Series A round led by Elevation Capital in 2021. 

SpeakX said the initiative is designed to provide liquidity earlier than typical startup exits or late-stage rounds.

The company added that its 20-member team collectively holds 6% equity, and the ESOP pool will expand as it raises new rounds.

Founded by Arpit Mittal, SpeakX simulates real-world conversations and provides automated speech correction and multilingual support. The platform reports high engagement, with learners spending about 15 minutes per session.

SpeakX initially began as a live learning platform but later pivoted in 2023 to an AI-powered learning app to make English learning more accessible and scalable. SpeakX’s app is currently available in India and select international markets, with plans to expand further across Asia and the Middle East.

The firm also shared updated business metrics: CAC payback in one day, 3.7x LTV/CAC within six months, and 35% retention at Month 3.