PharmEasy creates new ESOP pool worth Rs 592 Cr for founders and employees

After Dream11, Zomato, Swiggy, and Postman, PharmEasy is the fifth company to join the $ 5 billion rating club in 2021. It raised over $ 1 billion in primary and secondary capital this year and acquired Medlife and Thyrocare.

In its most recent fundraiser, the company’s valuation rose to $ 5.6 billion. PharmEasy’s overall growth story in FY22 has been exceptional and in order to reward its co-founders and employees, the company created new Employee Stock Options (ESOPs) for them.

PharmEasy has passed a special resolution to allocate 79,987 ESOPs to each of the five co-founders: Siddharth Shah, Dharmil Sheth, Hardik Dedhia, Karsh Parekh and Dhaval Shah. Corresponding Fintrackrs It is estimated that the total value of these stocks in the founders’ ESOP pool is around 236 billion rupees.

With this move, PharmEasy joins several companies in the growth phase that have issued new and additional shares to co-founders. Vedantu had created a management stock option that accounted for a 9.51% stake in the company, while the three co-founders of Unacademy hold additional stakes in the company (besides equity) through Phantom Stock. Phantom Stock is a plan for employees where they get the benefits of stock ownership without actually owning stock in the company.

B2B unicorns OfBusiness and Zomato and BigBasket had also issued bonus shares to its founding team. The trend of giving co-founders fresh shares seems to be a common component in high-growth or late-stage startups.

In addition to the co-founders, PharmEasy has also expanded its ESOP pool to include new options for eligible employees worth 356 billion rupees. According to official documents, PharmEasy has created a new ESOP pool with 603,103 shares. What is important is that it has also changed its existing ESOP program to align it with SEBI regulations.

This new allocation is a common practice among most growth and late stage startups considering going public in the next two years.

While five companies have surpassed the $ 5 billion valuation mark so far in 2021, a total of nine companies with three Decacorns (valued at over $ 10 billion) have been valued at over $ 5 billion: Paytm, Byju’s and Zomato (now a public company).

Oyo, PhonePe, Swiggy, and Ola are currently valued between $ 5 billion and $ 10 billion. Ola Electric, Meesho, CRED, Pine Labs, BrowserStack, Razorpay, Unacademy, and a few others are also valued at over $ 5 billion when they raise their next round.

Leave a Comment