Urban Company expands ESOP for future issuance

UrbanClap Technologies, the parent holding of on-demand home services marketplace Urban Company, on Wednesday told the Ministry of Corporate Affairs that it has created additional employee stock ownership options (ESOP) for future issuance. 

The Gurugram-based company’s board on February 8 passed a resolution to approve addition of 11,022 ESOPs, and five variations in the governing employees stock option scheme of 2015, as per a regulatory filing. 

“These new ESOPs have not been issued to employees but instead have been added to the ESOP pool for future issuance,” a spokesperson told TechCircle, to a request for comment on how much the new ESOPs are worth. 

As per the 2015 scheme, all existing options that are not vested and have been held for a period in excess of one calendar year from their date of grant, shall vest immediately prior to a public listing or in the event of a strategic sale by all existing institutional investors. 

One of the five variations is a right for the board to now be able to hire new talent or to reward its high performers, with ESOP grants of no more than 11,022 shares.  

Another variation paves way to provide accelerated vesting for ESOP which have been granted on or prior to November 30, 2020, or any other options, granted after November 30, 2020 with the specific approval of the board. 

UrbanClap Technologies recently reported a rise of 99% in its yearly turnover for the fiscal ended March 2020. Its total revenue rose to Rs 263.1 crore, from Rs 132.1 crore, a year earlier. 

Abhiraj Singh Bhal set up the company in November 2014 with Varun Khaitan and Raghav Chandra. The online marketplace provides services from beauticians, cleaners, plumbers, carpenters and appliance repairmen.  

Earlier 2020, the firm rebranded itself as Urban Company and converted its verticals into sub-brands, in an aim to become a horizontal gig marketplace with a global footprint across categories.  

As of August 2019, Urban Company was valued at close to $1 billion in a funding round where it raised $75 million, led by Tiger Global Management. The firm is also backed by investors such as Bessemer Venture Partners, Trifecta Capital, Accel, Eight Road Ventures India and Vy Capital. 

Urban Company recently tied up with online real estate marketplace Housing.com to provide renters assisted services on the latter’s latest product offering, Housing Edge.