Urban Company Announces Its Third & Largest ESOP Sale of US$5 Million

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More than 180 employees are eligible for the current round of ESOPs

Gurugram, 25 August 2020: Urban Company (Formerly UrbanClap) has announced an employee stock sale programme worth US$5 million (INR 37.5 crore). Under this programme, employees would be given the option to liquidate their vested ESOPs, which would be purchased through a secondary transaction by existing investor Vy Capital.

All existing employees who have vested ESOPs are eligible to participate in the current sale programme. About 180+ employees are eligible to participate in this programme.

“This is our third and largest ESOP sale event, and re-affirms our commitment towards creating a world-class ESOP programme. The previous two ESOP sale events were held in June 2017 and December 2018 respectively. Additionally, Urban Company’s ESOP programme has very employee friendly terms, such as an exercise price of Re. 1, accelerated vesting, a flat 4-year vesting schedule (25% each year) and an infinite hold period to exercise the ESOPs after the employee leaves the company. Approximately 450 employees, or 40% of the company’s full-time staff have ESOPs, from customer service representatives to our SVPs,” says Abhiraj Singh Bhal, Co-founder of Urban Company.

The latest ESOP sale values each ESOP at INR 110,000, which is the same price as the Series E secondary transaction which took place in June 2019.  Urban Company’s first ESOP sale event occurred in June 2017, coinciding with the Series C round of funding, and valued each ESOP at INR 24,500. During this sale, approximately 25 employees were eligible. The second ESOP sale event occurred in December 2018, valuing each ESOP at INR 61,864. This coincided with the Series D round of funding, during which approximately 100 employees were eligible. To date, the company has awarded ESOPs to 670 employees, including 450 current employees.

At Urban Company, employees are awarded ESOPs at the time of recruitment, during an appraisal cycle, and as part of various internal recognition programmes. The objective is to provide ownership and economic rewards to those who are contributing to the company’s success and to use it as an instrument to attract and retain top talent.

About Urban Company

Our Vision: To empower millions of professionals world-wide deliver services at home like never experienced before.

Founded in Nov 2014, Urban Company (formerly UrbanClap) is India and the UAE’s largest home services company, with recent expansion into Australia and Singapore. The company offers services such as beauty and spa at home, cleaning, plumbing, carpentry, appliance repair, painting, etc. through its mobile app and website. It operates in 18 metropolitan cities in India and 4 international cities (Dubai, Abu Dhabi, Sydney and Singapore). It has a service partner network of over 30,000 hand-picked service professionals, who are provided training, tools, financing, insurance, product procurement etc., apart from a steady stream of business. This full-stack approach helps the company live up to its promise of delivering high-quality, delightful services at home to its customers.

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