Urban Company has announced ESOP sale programme worth $5M

Of Urban Company, this is the third ESOP sale programme and its existing investor, Vy Capital, is going to purchase the shares. Formerly, Home services startup Urban Company is famous as UrbanClap. It has officially announced about an employee stock option (ESOP) sale plan worth $5 million with the buyer being its existing investor Vy Capital.

In this programme, the eligible candidates will be given the option to liquidate their vested ESOPs by a secondary transaction by Vy Capital, a press release conducted by the company. Around 180 employees are suitable to participate in this programme, Urban Company said.

This programme is the third ESOP purchase programme, which is going to be conducted by Urban Company with previous two held in June 2017 and December 2018. Urban Company co-founder Abhiraj Singh Bhal said:

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“Approximately 450 employees, or 40 percent of the company’s full-time employees have ESOPs from customer service representatives to our SVPs.”

However, the current sale values each ESOP at Rs 1,10,000, according to the company the same price as the Series E secondary transaction, which took place in June 2019. Its first ESOP sale event was conducted in June 2017, coinciding with the Series C round of funding, and each share was valued at Rs 24,500.

The second sale event was conducted in December 2018, where each share was valued at Rs 61,864 and this coincided with the Series D round of funding. The company also has awarded ESOPs to 670 employees, including 450 current employees.

Urban Company said- “Employees are awarded ESOPs at the time of recruitment, during an appraisal cycle, and as part of various internal recognition programmes. It said the objective is to provide ownership and economic rewards to those who are contributing to the company’s success and to use it as an instrument to attract and retain top talent.”

Thid company was founded in November 2014. Currently, the company has its presence at 18 cities in India, Dubai, Abu Dhabi, Sydney, and Singapore. It offers services like beauty and spa at home, cleaning, plumbing, carpentry, appliance repair, painting, etc., through its mobile app and website.