Urban Company’s home-services marketplace posted a 33% increase in valuation to $2.8 billion in a recently ended employee stock sale program, the company said Sunday.
The company raised Series F funding of $255 million in June, led by Prosus Ventures, Dragoneer and Wellington Management, with participation from Vy Capital, Tiger Global and Steadview, at a $2.1 billion valuation. la.
Urban Company shared that it has closed the sale of ESOP (employee stock ownership plan), valued at $7.3 million (Rs 54.6 crore) allocated to 770 employees including shares votes from about 390 former employees.
“Urban Corporation recently concluded its fourth and largest ESOP sale of $7.3 million. The ESOPs sold in this transaction were largely purchased by existing institutional investors. The transaction peaked at a valuation of $2.8 billion, up from $2.1 billion for a Series F Round in June 2021,” the statement said.
With this round, the company said it has facilitated about $13.21 million worth of liquidity (approximately Rs 100) to its employees and ex-employees in 4 ESOP sale schemes.
Urban Company’s first ESOP sale took place in June 2017, followed by a second ESOP sale in December 2018 and a third in August 2020.
“This is the fourth and largest ESOP secondary sale that we have facilitated to date. In our experience, such liquidation opportunities strengthen team members’ confidence in ESOPs. Furthermore, we have focused on creating an employee-friendly ESOP program, with features like Rs 1 strike price, linear review schedule and time unlimited holding period to implement ESOP after employee leaves the company,” said Urban Company co-founder Raghav Chandra.
Over the past seven years, Urban Company says it has issued ESOPs to 940 current and former employees.
“A total of 550 of these 940 individuals have offered ESOPs and are eligible to participate in this secondary sales program. Employees and former employees can sell up to 100% of their assigned ESOPs as part of the sale. this sale,” the statement said.