Launch a super app amidst policy volatility related to e-commerce entitiesis rewarded Founder of BigBasket and has strengthened its post-acquisition plans for 1mg.
This comes just a few months after the group
Spent more than $1.5 billion to acquire majority stake in e-grocery and e-pharmacy, except taking a
Minority stake in Mukesh Bansal’s Cultfit, formerly known as CureFit.
Founder of BigBasket – Menon Day, Vipul Parekh and VS. Sudhakar- has been given a new set.management stock options‘ or after acquisition by Msops, the group’s digital arm Tata DigitalAccording to regulatory documents reviewed by ET.
Msops has been allocated as part of the group’s effort to retain, attract and inspire talent in the online business-to-business (B2B) arm. bigbasket – Supermarket Grocery Supplies (SGS) – in which Tata took over 64% stake.
Meanwhile, Bansal, who is the chairman of Tata Digital, has joined the e-grocer Board.
These proposals were approved last month, according to documents obtained by ET through business intelligence platform Toffler.
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SGS has also received around Rs 85 crore from an existing investor, the UK-based CDC Group, and has also issued ESOPs to its employees.
However, MSOPS were issued on the basis of past performance and future potential of eligible employees. The documents show that their vesting period starts three years from the date of allotment.
While it is common for startups to offer ESOPs to senior employees, the fact that BigBasket founders are given ESOPs is an indication that the Tata group wants them to continue leading operations and grow the business.
bigbasket was the last
$2 billion value after acquisition And cash flows from Tata, and the value of new grants could be higher as the company’s valuation rises ahead of the expected public market start over the next 1-2 years.
Meanwhile, the founders of pharmacy etailer 1mg – Prashant Tandon and Gaurav Agarwal – have a lock-in period of five years and three months. During this period, they can sell only a small number of shares and will have the right to continue as directors, subject to certain conditions, even if they are not employed on the rolls of the company.
Both Tandon and Agarwal would need written consent from Tata to sell any shares during the lock-in period, except 5,577 shares held by Tandon and 3,713 shares held by Agarwal, which were sold during the ‘management lock-in’ can go. they want.
A Tata Digital spokesperson did not respond to ET’s email seeking comment. Menon did not comment on his new stock options, while Tandon was not immediately available for comment.
Documents revealed that this deadline is effective from April 2021.
Tata Digital or its affiliates (Tata Group) shall have the right of first offer (ROFO) if any financial investor of 1mg wishes to sell or transfer his/her stake in the e-pharmacy to any third party.
This will be valid as long as Tata Digital and its affiliates hold a minimum 26% stake.
No shareholder of 1mg may transfer shares to any ‘Restricted Person’, including any ‘Competing Platform’ as well as affiliates of Tata Digital, including any family member.
In the e-pharmacy sector,
Tata Digital competes with Reliance Industries-owned Netmeds and venture fund backed PharmEasy in addition to smaller startups.
According to documents reviewed by ET, financial shareholders of 1mg can ask the company to go for an IPO after about five years, but Tata Digital will not be obliged to sell shares in the IPO.
Typically, in an IPO, a company may choose to raise capital by fresh issuance of shares and existing investors may sell a part or their entire stake in the company.
Besides Tata Digital, Redwood Global Korea Omega and World Bank’s investment arm International Finance Corporation are among other investors in the Gurugram-based company.
Sufficient
Indian startups have now applied for IPO, and 1mg may also arrive in the public markets but the timeline is not known.
Following its acquisition by Tata Digital, 1mg – rebranded as Tata IMG – received a total capital infusion of $100-$120 million and was valued at approximately $450 million,
ET reported in June.
The overall incentives and other rights held by the founders indicate that they remain on the wheels of their enterprises even after the acquisition.
ET had reported in July that top executives of Tata Digital had met founders like Menon, Tandon along with Bansal.
Strategize on the group’s e-commerce plans And they are expected to work closely with each other. Menon also sits on the board of 1mg.
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