App for community management A stock buyback program for more than 50 employees has been announced by MyGate. The Bengaluru-based company’s improved financial performance in the previous and current fiscal years is what prompted the buyback.
MyGate has revealed plans to repurchase 20% of vested shares from staff members who have worked for the company for four years.
“We are in the strongest financial position that we have ever been and well capitalised to fuel our growth and new initiatives,” said Abhishek Kumar, co-founder of MyGate.
For almost four years, MyGate expanded without seeking venture capital funding. Operating revenue for the company increased by 77.3% from Rs 40.1 crore in FY22 to Rs 71.10 crore in FY23.
It was able to reduce losses by thirty-five percent during that time.
The company’s main sources of revenue are resident welfare associations and brands advertising on the MyGate app through subscription fees.
In November 2023, the company reported that it had zero cash burn.
In October 2019, MyGate completed a $56 million Series B round of funding. In November 2022, it raised $12 million in strategic capital from insurance provider Acko and home service marketplace Urban Company.
The quantity of ESOP buybacks and payouts set a new record in the previous year, even though the number of buybacks declined in 2023. The media reported that the entire EOSP payout, buyback, and liquidity in 2023 was close to $802 million. The amount recorded for buybacks in 2021 and 2022 was $440 and $200 million, respectively. Classplus, an edtech company, announced an ESOP buyback for over 150 employees last month.
