Urban Company Announced Rs 203 Cr ESOP Secondary Sale for 446 Employees

Urban Company, the home services marketplace, has announced its largest employee stock ownership plan (ESOP) secondary sale worth Rs 203 crore (approximately $25 million). This marks the company’s fifth ESOP buyback, involving 446 employees, as detailed in their press statement.

The buyback allows employees to liquidate their vested stocks, with participants ranging from 23 to 56 years old, and 28% of the beneficiaries being women.

The shares will be purchased by Dharana Capital (an extension of existing investor Vy Capital), along with existing investors Vy Capital and Prosus.

To date, Urban Company has granted ESOPs to 1,593 employees, with around 784 of them participating in five buybacks, collectively liquidating ESOPs worth Rs 306 crore ($37 million).

The last ESOP liquidity program, conducted in December 2021, valued the company at $2.8 billion. Although the current buyback’s valuation was not disclosed, sources indicate it ranges between $2.2 billion and $2.5 billion.

Urban Company achieved unicorn status in June 2021, just before the fourth buyback, and has not raised external capital since then.

According to TheKredible, a startup data intelligence platform, Urban Company posted a revenue of Rs 637 crore in FY23, successfully reducing its losses by 40.1% during the fiscal year.

The ESOP buyback comes shortly after the company turned profitable at the profit-before-tax (PBT) level, reporting a PBT of Rs 7 crore on a consolidated basis in April. The company anticipates its UAE operations to become profitable in the near future.

Sources suggest that Urban Company is preparing for a public listing, which is likely to occur in the second half of 2025.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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