MobiKwik: stock options for employees to strike several millionaires after the IPO
MobiKwik, an 11-year-old digital start-up linked to the IPO, said on Tuesday that its upcoming public offering (IPO) is expected to deliver generous rewards to its employees – via stock option plans. ’employee share purchase (ESOP) – who have trusted on the company’s vision throughout its journey.
Several of the employees are expected to cash the IPO through the exercise of options, with the fintech reserving 4.5 million shares or 7% of its equity for its ESOPs as part of the impending public offering.
MobiKwik, which filed its draft prospectus with SEBI in July 2021, is seeking to raise ₹ 1,900 crore ($ 255 million) in the IPO slated for later this year. Of this amount, the new issue will be 1,500 crore and the remaining ₹ 400 crore will be an offer for sale by existing shareholders.
Even based on the latest estimate of the $ 720 million Series G funding cycle, 7 employees are worth over 10 crore and 31 are worth over 1 crore each, Mobikwik said.
Most importantly, 118 current employees (almost 1/4 of the overall employee base) have become Rupee millionaires, underscoring the company’s philosophy of ensuring fair participation instead of just focusing on the team. of management. The cumulative wealth creation for employees currently amounts to 3 billion euros.
In the Series G cycle, the company raised $ 20 million from the Abu Dhabi Investment Authority (ADIA) at a per share value of 895.80 per share. This implies a gain of 600 percent on average for employees on their ESOPs (even at the last price round). This 6-fold increase in the value of ESOPs has created generational wealth for employees.
Commenting on the announcement, Upasana Taku, President, Co-Founder and COO of MobiKwik, said in a statement, “Over the past decade, MobiKwik has grown through the strength of its employees to become a player. major fintech company in India. As we further consolidate our presence and leadership, we wanted to recognize and reward our employees for their efforts. Together, we walk in our quest to create the most inclusive digital payments and credit experience for Bharath while generating value for all. Mobikwik counts Sequoia Capital India, American Express, Bajaj Finance, Cisco and Abu Dhabi Investment Authority among its investors.