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Employees of B2B e-commerce platform Udaan set for Rs 175-cr ESOP bonanza

The development comes at a time when the Bengaluru-based firm is witnessing a huge surge in business across its food, lifestyle and electronics verticals

Topics
B2B startups | Esops

Peerzada Abrar  |  Bengaluru 

Udaan co-founders
Udaan co-founders (from left) Amod Malviya, Vaibhav Gupta, and Sujeet Kumar said leading investors had shown interest in a secondary stock buyout programme

Business-to-business e-commerce platform Udaan is offering an ESOP (employee stock ownership plans) liquidity plan worth Rs 175 crore to employees, according to people in the know.

The development comes at a time when the Bengaluru-based firm is witnessing a huge surge in business across its food, lifestyle and electronics verticals.

In a letter to employees, Co-Founders Amod Malviya, Sujeet Kumar, and Vaibhav Gupta said leading investors had shown interest in taking part in the organisation’s journey ahead through a secondary stock buyout programme.

“We want to take this opportunity to reward our employees who have worked relentlessly over the last many months and years with a meaningful wealth creation opportunity through an ESOP liquidity offer 2021,” said the letter, seen by Business Standard.

All active employees not serving their notice and who have vested stocks as of March 31 will be eligible.

“The journey of Udaan would not have been possible without all of you and your significant contributions,” said the letter. “Our ESOP plan and programme mirror this belief.”

The founders thanked the employees for stepping up through this pandemic to enable businesses and support colleagues.

Udaan said employees have worked relentlessly to transform the way trade is done in the country and empowering the businesses of Bharat.

“We want to take this opportunity to reward our employees for their continuous effort and significant contribution with a meaningful wealth creation opportunity through an ESOP liquidity program,” said an Udaan spokesperson.

B2B e-commerce players including Udaan are expected to disrupt the $1-trillion consumer retail market in India, said US-based research powerhouse Bernstein in a report.

Categories such as food, lifestyle and electronics together accounted for over 1,550 sellers from across India, primarily Bharat (tier-2 and tier-3 cities and rural India) in 2020, registering sales turnover of more than Rs 1 crore each on Udaan.

Udaan’s daily food business volume has crossed 8,000 tonnes, making it the largest grocery player in the country.

Udaan has a national reach spanning 15 million manufacturers, 25-30 million retailers, and 10-12 million institutional businesses such as offices, schools and HoReCa (hotel, restaurant and cafe).

The objective is to empower small businesses with technology, financial inclusivity, and supply chain capabilities to compete in an increasing tech and digital world. Udaan itself competes with players such as Flipkart Wholesale, Amazon and Reliance’s JioMart.

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First Published: Thu, April 29 2021. 18:36 IST
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