employee stock options It is a type of profit offered by companies. They give employees the right to purchase company stock at a certain price for a specified period of time. MobiKwik said in a press statement that its ESOP program is meant to “attract, retain and reward qualified employees in the competitive talent market.”
The Gurgaon-based fintech startup said 20% of its grants were made around that time.
filed its draft red herring prospectus (DRHP) in July. The firm plans to raise Rs 1,900 crore ($255 million) under this IPO, is scheduled for the end of this year.
according to this DRHPMobiKwik aims to raise Rs 1,500 crore through primary share sale. The remainder would be a secondary transaction in which existing investors would sell their share of the equity. The 11-year-old startup includes Sequoia Capital India, Bajaj Finance, American Express, Cisco and Abu Dhabi Investment Authority among its investors.
According to Mobikwik, its last fund collection in July in which it
Received $20 million from Abu Dhabi Investment Authority (ADIA) at a valuation of Rs 895.80 per share, saw an average six-fold jump for stock options held by its employees. MobiKwik was worth $720 million. Sources had earlier told ET that the company could be eyeing a valuation of $1 billion for the IPO.
Based on the new valuation, MobiKwik claims that seven of its employees have stock options worth over Rs 10 crore, and 31 each have more than Rs 1 crore. It also said that 118 employees, or one-fourth of the total, have seen their stock options valued at more than Rs 10 lakh.
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Upasana Taku, Chairperson, Co-Founder and Chief Operating Officer, MobiKwik, said, “Over the past decade, MobiKwik has grown from the strength of its workforce to become a major fintech player in India. “As we further strengthen our presence and leadership, we want to acknowledge and reward our employees for their efforts.”
The 12-year-old startup is one of a growing list of consumer internet firms including CarTrade, Paytm, Nykaa and Policybazaar that are eyeing a stock market debut this year. Bajaj Finance holds a 13.8% stake, while Sequoia Capital India holds a 17.2% stake in MobiKwik. Bennett, Coleman & Co Ltd holds 1.08% stake in the startup. BCCL is the parent company of The Times of India Group, which also publishes The Economic Times.
Stock options are especially popular with new-age companies, which use them to attract and retain talent. Over the past 12-18 months, demand for employee stock options has increased with startup valuations, with record amounts being pumped into the ecosystem.
top tier startups like
Paytm,
phonepe,
Udaan,
razorpay,
my guess,
echo,
zerodha And
Hailstone All stock options are given to the employees. ET had reported in July that several startups
Cumulatively bought back shares Valued approximately $546 million from employees in the past year.