The company sent an email to all the active employees who are not serving notice period and who have vested stocks as of March 31, 2021, will be eligible to participate in this programme.
B2B ecommerce firm Udaan has announced an employee stock ownership plan (ESOP) liquidity programme worth about Rs 175 crore.
Udaan co-founders Amod Malviya, Sujeet Kumar and Vaibhav Gupta said the investors have shown interest in taking part in Udaan’s organizational journey ahead, through a secondary stock buyout programme.
“All active employees who are not serving notice period and who have vested stocks as of March 31, 2021, will be eligible to participate in this programme,” the email said.
While details of the investors and the size of the ESOP plan were not disclosed, sources said Catamaran Ventures has invested in Udaan through the secondary route by purchasing employees’ stocks.
The email included the size of the ESOP programme was about Rs 175 crore.
An Udaan spokesperson said that “Our employees at Udaan have worked very hard and dedicatedly over the years to transform the way trade is done in India. We want to take this opportunity to reward our employees for their continuous effort and significant contribution with a meaningful wealth creation opportunity through an ESOP liquidity programme,”.
In January, Udaan raised $280 million (about Rs 2,048 crore) in funding from investors, including Lightspeed Venture Partners, Tencent, DST Global, GGV Capital, Altimeter Capital, Octahedron Capital and Moonstone Capital. The company, which has raised $1.15 billion in total to date, was valued at over $3 billion post the transaction.
While Udaan did not disclose its GMV numbers, a report by Bernstein stated that the company’s GMV was at about $2.1 billion ARR (annual recurring revenue) in December 2020.
GMV is a term used in online retailing to indicate the gross merchandise value of products sold through the marketplace over a certain period.
Udaan — which has 30 lakh businesses on its platform — has operations across categories, including lifestyle, electronics, home and kitchen, staples, fruits and vegetables, FMCG, pharma, toys and general merchandise. Of these, 17 lakh are small retailers, including kirana shops, chemist shops, small hotels and restaurants. It has over 2,600 employees on its payrolls.