The first-ever employee stock ownership plan (ESOP) buyback for more than 130 employees in a variety of roles and functions has been announced by Google-backed edtech company Adda247.
For an undisclosed sum, the edtech company recently purchased the platform Ekagrata Eduserv for preparing for the chartered accountancy (CA) exam.
Considering that the company intends to go public (IPO) in 2027, this ESOP buyback makes sense. 40 times the original purchase price is the average buyback price.
Adda247 is a company that was co-founded in 2016 by Anil Nagar and Saurabh Bansal. It provides e-books, live online classes, on-demand video courses, and mock exams. The business has also ventured into the higher education and skill development fields.
The company states that 2 million students are enrolled in its premium courses, and it serves over 40 million users each month.
Swiggy, a food delivery and quick commerce company, revealed last week that it was launching a $65 million ESOPs liquidity program. The following companies have repurchased employee stock options (ESOPs) from their staff members: Urban Company, MyGate, Classplus, Meesho, The Sleep Company, XYXX, and Pocket FM.
Media estimates that in 2023, Indian startups will have repurchased approximately $802 million worth of EOSPs. The buyback amount was reported as $440 million in 2021 and $200 million in 2022, respectively.
