Amazon-Backed XYXX Unveils First ESOP Buyback

D2C menswear brand XYXX on Monday (April 1) unveiled its first Employee Stock Ownership Plan (ESOP) buyback programme.

The Amazon-backed startup said it had initiated the ESOP programme in 2020 for eligible employees who can now liquidate their stocks at a 6x premium with zero strike price.

Notably, the eligible employee pool includes senior managers to heads of departments as well as executive leadership. The average age of employees eligible for the buyback is 36 years. 

“Announcing our first-ever ESOP buyback is a proud moment for the leadership team, and especially me. It reaffirms my belief in the collective success of team XYXX and the pivotal role they have played in our growth story. As a new-age, consumer brand start-up, we stand tall with leading fintech, ed-tech and e-commerce brands when it comes to wealth creation options for our workforce,” said XYXX’s founder and CEO Yogesh Kabra. 

Founded in 2017 by Kabra, XYXX is a D2C menswear brand that sells products across multiple categories such as underwear, loungewear and athleisure.

The startup claimed to be growing at a CAGR of 100%. It posted a revenue of INR 57 Cr in FY22. It expects to bank on the growing Indian innerwear market to fuel its growth moving forward. In this space, it competes with D2C startups like DaMensch and Almo. 

The startup hasn’t disclosed the size of its maiden ESOP buyback plan. According to its LinkedIn profile, the startup has an employee base of 259. 

With this, XYXX joins the increasing ranks of startups initiating ESOP buyback plans this year. While audio series platform PocketFM also announced its maiden ESOP buyback worth $8.3 Mn today, prominent names like CRED, MyGate, Meesho, among others, have also announced the plans this year. 

These developments come in after Inc42 reported a dwindling talent sentiment towards joining startups earlier this year. According to Inc42’s Indian Startup Founder Survey 2023, around 80% of the over 400 Indian startup founders surveyed felt that potential employees would be hesitant in joining startups post a string of mass layoffs. 

The report also found out that 55% startups were banking on ESOPs to bring the Indian workforce back to the startup ecosystem. 

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