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Whatfix rolls out $58 Mn liquidity event for employees and investors

EntrackrEntrackr · 9m ago
Whatfix rolls out $58 Mn liquidity event for employees and investors
Medial

Whatfix, a digital adoption platform (DAP), has introduced a $58 million liquidity program for its employees and investors. This marks the company’s fourth buyback of employee stock options (ESOPs). The Bengaluru-based company stated that eligible current and former employees now have the chance to sell a portion of their vested units at a premium over the earlier Series D valuation. This announcement comes on the heels of the company’s recent $125 million Series E funding round, led by Warburg Pincus, with contributions from existing investor SoftBank Vision Fund 2. Consequently, the firm’s valuation increased to $900 million from $600 million during Series D fundraise. It has raised over $265 million to date Whatfix introduced its first employee stock ownership plan or ESOP buyback scheme worth $4.3 million in July 2021. The firm did not announce the other two buybacks in the media. Founded by Khadim Batti and Vara Kumar, Whatfix provides in-app guidance and performance support for web applications and software products. Its tools are used by large companies to drive efficiency. The company asserts that it has been awarded five patents by the US Patent Office, with an additional 18 patents in the works. Despite facing macroeconomic challenges over the past two to three years, Whatfix claims to have kept its cash burn low while sustaining growth. The firm has doubled its workforce to over 960 employees, and has opened four new offices in Singapore, Germany, Australia, and India since its Series D funding round. This is the second largest ESOP buyback in 2024. In July, IPO-bound food delivery and quick commerce firm Swiggy announced an ESOPs liquidity programme worth $65 million. In the ongoing calendar year, Urban Company, MyGate, Classplus, Meesho, The Sleep Company, XYXX, Purplle, Dehaaat, Leverage Edu, Pocket FM and Adda247 bought back ESOPs from their employees.

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WinZO concludes 4th ESOP buyback

EntrackrEntrackr · 9m ago
WinZO concludes 4th ESOP buyback
Medial

Online gaming startup Winzo has announced the completion of its fourth round of employee stock options plan (ESOP) liquidation. This initiative allows eligible employees, approximately 30% of WinZO’s workforce, comprising team members with at least two years of tenure, to liquidate their vested ESOPs. In the last 12 months, the company has filed more than 25 technology patents across the world for its supercomputing technology, real-time communication innovation, and AI applications in content creation. Established in 2018, Winzo offers over 100 games across categories such as strategy, sports, casual, card, arcade, racing, action, and board games. Previously, WinZO conducted three rounds of ESOP liquidation in 2021 and 2023. With a team of 200 members, WinZO has raised $100 million in cumulative funding from leading investors, including Griffin Gaming Partners, Maker’s Fund, Courtside Ventures, and Kalaari Capital. According to data intelligence platform, TheKredible, Winzo’s revenue from operations surged to Rs 674 crore in FY23 from Rs 234 crore in FY22. Similar to every online gaming platform, Winzo spent a major chunk (46% of its total expenditure) on marketing (advertising cum promotions). This cost surged 29.6% to Rs 258 crore in FY23. Recently, Whatfix rolled out a $58 million liquidity program for its employees and investors. In the ongoing calendar year, Swiggy, Urban Company, MyGate, Classplus, Meesho, The Sleep Company, XYXX, Purplle, Dehaaat, Leverage Edu, Pocket FM and Adda247 bought back ESOPs from their employees.

Indian startup employees cash out $1.7 Bn through ESOPs since 2020

EntrackrEntrackr · 9m ago
Indian startup employees cash out $1.7 Bn through ESOPs since 2020
Medial

The Indian startup ecosystem has witnessed an exponential rise in employee stock ownership plan (ESOP) buybacks since 2020. According to data compiled by TheKredible, over 100 startups have implemented ESOP buyback, liquidity, and payout programs worth around $1.7 billion in the past five years, starting from January 2020. This trend reflects startups’ commitment to rewarding talent, providing employees with financial benefits, and boosting workplace morale. As reported in our previous edition, 80% of the total buybacks were conducted by 20% of the startups. Year-on-year data highlights the evolution of ESOP buybacks. In 2020, only 11 startups participated, totaling a modest $50 million. However, the trend accelerated rapidly, with 40 startups completing buybacks worth $440 million in 2021. This was followed by 26 startups with $200 million in buybacks in 2022. The upward trend continued in 2023, with 14 startups generating an impressive $802 million through buybacks or liquidity events. As of October 8, 2024, as many as 17 startups have contributed $188 million to this growing total. Among the leading players in ESOP buybacks, Flipkart, Razorpay, Swiggy, Whatfix, and BrowserStack stand out as the top five. Sectors most actively participating include e-commerce, fintech, SaaS, edtech, and logistics. Notably, 28 unicorns have joined this trend, reflecting a commitment to their employees’ financial well-being even among highly successful startups. [2024 vs 2023] The IPO-bound foodtech firm Swiggy led the 2024 ESOP liquidity chart with $65 million. It was closely followed by SaaS company Whatfix, which recently announced $58 million in ESOP liquidity for employees and investors. Urban Company and Meesho ranked next, with $24.4 million and $24 million, marking their largest ESOP buybacks to date. Titan Capital co-founders Kunal Bahl and Rohit Bansal saw strong returns on their investment in Urban Company. Other notable buybacks include Pocket FM, Purplle, and Dehaat, while nearly 50% of startups did not disclose buyback amounts. Check the complete data at TheKredible. In 2023, Flipkart accounted for $700 million in ESOP liquidity as compensation for value lost in the PhonePe spin-off, while the remaining startups totaled $102 million in buybacks. [2022 vs 2021] In 2022, fintech unicorn Razorpay led as the largest wealth creator with a $75 million ESOP liquidation program. Similarly, Swiggy, after reaching decacorn status, announced a $23 million ESOP program. The year 2021 marked a high for buyback events, with companies like Flipkart, Swiggy, PhonePe, Udaan, and others announcing ESOP liquidity totaling over $440 million. However, recent budget proposals may impact ESOPs, as the Union Budget suggests treating share buybacks as dividend income starting October 1, potentially affecting employee retention strategies. [Conclusion] One thing that is quite clear is that ESOPs are a well accepted and integral part of startup compensation and reward plans today. Employees are no longer averse to or unfamiliar with the concept, and enough examples and data is available out there for them to make an informed decision on the fairness, and relevance of their firms ESOP plans, if any. Boosting it further is the recent string of IPOs, besides upcoming ones that will provide the kind of liquidity events few imagined even in 2022. If anything, we believe firms will be scrutinised more closely by markets and the media on the size and application of their ESOP plans going forward. ESOPs can look very disproportionate in retrospect at times, and firms will have to think through generous grants and the rules governing them for senior and board level grants especially.

Exclusive: Whatfix bags $100 Mn in primary and secondary capital

EntrackrEntrackr · 10m ago
Exclusive: Whatfix bags $100 Mn in primary and secondary capital
Medial

SaaS-based digital adoption solution provider Whatfix has scooped nearly $100 million in primary and secondary funding led by Sweet Nectar Investments (Warburg Pincus) and SoftBank. With this, the Bengaluru-based company has marked its first funding round in the last three years. The board at Whatfix has passed a special resolution to issue 13,201 Series E compulsory convertible preference shares (CCPS) at an issue price of Rs 2,24,788.44 per share to raise Rs 296.74 crore in primary capital, the company’s regulatory filings with the Registrar of Companies show. Additionally, the transaction also includes secondary funding worth nearly Rs 530 crore, the filings reveal. Whatfix aims to use the primary proceeds to expand and grow the business. Sweet Nectar Investments (Warburg Pincus) led the round with Rs 615 crore (Rs 271.7 crore primary and Rs 343.2 crore secondary) while the company’s existing backer SoftBank poured in Rs 210.5 crore (Rs 25 crore primary and Rs 185.5 crore secondary) funding. The secondary funding has been extracted from taking the same issue price under consideration. However, the transaction could also have taken place at a discount rate which reduces the overall amount raised. As per the startup intelligence platform TheKredible, Whatfix has been valued at around Rs 6,871 crore or $820-830 million (post-money). It has raised over $140 million before the fresh funding round. In June, the Economic Times reported that Whatfix is in talks to raise a new round which will see partial exits of early investors Helion Venture Partners and Eight Roads Ventures. Post allotment of the round, SoftBank increased its stake to 15.51% while Warburg Pincus’ Sweet Nectar Investments acquired 8.94% shares in the company (including the secondary transaction). Queries sent to Whatfix did not elicit an immediate response. Founded by Khadim Batti and Vara Kumar, Whatfix provides in-app guidance and performance support for web applications and software products. Its tools can be used by large companies and organizations, and integrated into their own apps to help guide the workforce in using them more efficiently. Whatfix recorded a 65.7% growth in revenue from operations to Rs 285 crore while its losses also went up 31.2% to Rs 328 crore in FY23. Importantly, Whatfix generated the entire revenue from global markets: America, Europe, Asia Pacific, and the Middle East region. About 61% of the revenue emerged from the US followed by Europe. The company is yet to reveal its FY24 numbers.

Flipkart announces new ESOP liquidity worth $50 Mn

EntrackrEntrackr · 4d ago
Flipkart announces new ESOP liquidity worth $50 Mn
Medial

Flipkart announces new ESOP liquidity worth $50 Mn This announcement follows Flipkart’s record $700 million payout to employees in 2023, one of the largest ESOP buyback events in Indian startup history. Flipkart has announced a fresh ESOP (Employee Stock Option Plan) liquidity opportunity for its employees, according to an internal note from the company’s chief executive officer Kalyan Krishnamurthy. As per the note, eligible employees will be allowed to liquidate up to 5% of their vested ESOPs as of July 5, 2025, at a buyback price of $174.32 per option. Payouts will be made in August 2025 under the Flipkart Stock Option Plan 2012. An ET report estimates the size of the ESOP buyback at $50 million, with 7,000 to 7,500 employees expected to benefit from the liquidity program. Flipkart is currently valued at around $36 billion. Krishnamurthy also added that if key performance goals are met by the end of 2025, another 5% liquidity window could open in early 2026. A Flipkart spokesperson confirmed the development to Entrackr. This announcement follows Flipkart’s record $700 million payout to employees in 2023, one of the largest ESOP buyback events in Indian startup history. Media reports indicate the firm plans to launch its IPO with a valuation of $60-$70 billion. The company’s board has already approved the process to shift its holding structure from Singapore to India. In 2025, a clutch of startups including Darwinbox, Rapido, Univest, Deserve, and Even Healthcare have implemented ESOP buyback, liquidity, and payout programs worth around $67 million. In 2024, more than 20 startups implemented $200 million. According to startup data intelligence platform TheKredible, the ESOP buyback or liquidity amount stood at $802 million in 2023, $440 million in 2021, and $200 million in 2022.

The Sleep Company rolls out second tranche of ESOP buyback for 105 employees

EntrackrEntrackr · 1y ago
The Sleep Company rolls out second tranche of ESOP buyback for 105 employees
Medial

Comfort-tech brand The Sleep Company has announced the second tranche of ESOP (employee stock ownership plan) buyback for its employees. The current buyback will benefit a total of 105 employees, including 50% of women employees. After securing Rs 13.4 crore in pre-Series A, and Rs 177 crore in a Series B round led by Premji Invest and Fireside Ventures, the company recently secured Rs 184 crore in Series C Funding. The Sleep Company has rolled out the second tranche of the programme in just four years since its inception, which is set to benefit employees irrespective of their seniority. The company rolled out its first ESOP buyback programme in 2023 worth Rs 83.47 lakh. Founded by Priyanka and Harshil Salot, The Sleep Company offers premium products with technology rooted in developments in material science and sleep science. In June 2022, the platform marked its foray into offline retail with the launch of its first store in Bengaluru, to open over 150 stores by end of 2024. The firm claims to have achieved significant growth with its revenue growing 2.6 times over the last 12 months, reaching Rs 130 crore in sales in 2023. Through its omnichannel model, the company has over 70 stores across the country and is well on its way to opening 150 stores by the end of 2024. Last month, audio series platform Pocket FM announced its first ESOP buyback worth $8.3 million. As per data compiled by TheKredible, the total EOSP buyback/payout/liquidity stood at nearly $802 million in 2023. In 2021 and 2022, the buyback amount was recorded at $440 and $200 million respectively. In 2024, MyGate, Classplus and Meesho also completed their ESOP buyback scheme.

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