Cars24 announces ESOP buyback of Rs 75 cr after raising $850 mn in funding

The value of total ESOP buyback by Cars24 to date stands at Rs 113 crore. The company claims to have consistently held annual ESOP buybacks for the past four years.

Cars24, an e-commerce platform for pre-owned vehicles which has raised around $850 million in funding in the last six months, has announced an ESOP (employee stock option plan) buyback worth Rs 75 crore to reward the company’s employees.  

The company said it has consistently held annual ESOP buybacks for the last four years, for both existing and former employees. The value of total ESOP buyback by the company to date stands at Rs 113 crore.

In December last year, Cars24 had raised $400 million in its Series G round of funding at a $3.3-billion valuation. The company’s previous funding round was in September, when it raised $450 million at a $1.84-billion valuation.

Ruchit Agarwal, co-founder and CFO of Cars24, said “This announcement demonstrates our confidence in our business and the growth we are witnessing. Our annual ESOP buyback plan is an extension of our appreciation for our employees.”

“We want to recognise and reward them for their determination and drive to achieve the unthinkable by solving unique problems each day that haven't been solved before with respect to the used car market. For start-ups, ESOPs are a great way of attracting and retaining talent,” he added.