CityMall said that the ESOP buyback program would help to build a robust, fast-growing and employee-centric startup
The development comes three months after Inc42 reported that CityMall sacked about 191 employees as a part of its cost-cutting measure
In March, CityMall secured nearly $75 Mn in its Series C funding round led by Norwest Venture Partners
Social commerce startup CityMall has initiated its Employee Stock Ownership Plan (ESOP) liquidity program for over 50 employees. Under the program, eligible employees including core team members and senior management will have the option to liquidate stock options up to $1.3 Mn.
CityMall said that the ESOP buyback program will help to build a robust, fast-growing and employee-centric startup. The ESOP liquidation is a way to recognise the efforts of early employees, who joined CityMall in its initial years and have made significant contributions in its journey.
“The ESOPs buyback is an important milestone for us to build a company that is Bharat first, employee-focused and rewards people those who believed in us. While we are at the beginning of our growth story, we’re proud and privileged to have been able to undertake this step which companies much later would in their journeys,” said Angad Kikla and Naisheel Verdhan, founders of CityMall.
The development comes three months after Inc42 reported that CityMall sacked about 191 employees as a part of its cost-cutting measure. These layoffs happened across various divisions such as customer support, business development, and human resource, among others.
Founded in 2019 by Kikla and Verdhan, CityMall is a social commerce startup. It deals in various categories including grocery, FMCG, electronics and fashion, among others. It mainly serves Tier III and IV cities and towns of Haryana, UP, and Delhi NCR.
In essence, CityMall helps micro-entrepreneurs create a digital store via their phones. It further helps them connect with prospective customers.
CityMall said that with its ‘community group purchase’ model, it aims to serve 500 Mn new internet users and also, empower thousands of micro-entrepreneurs in the country.
In March, CityMall secured nearly $75 Mn in its Series C funding round led by Norwest Venture Partners. Luxembourg-based Citius VC, Westbridge Ventures, Jungle Ventures, General Catalysts, Accel India, and Elevation Capital also participated in the round.
According to Inc42’s estimates, post the Series C funding round, CityMall’s valuation grew to nearly $300 Mn.
Prior to that, in 2021, CityMall raised $22.5 Mn in its Series B funding round from General Catalysts, and Jungle Ventures, among others.
It is prudent to note that in the present year, Indian startups can be seen liquidating ESOPs or introducing ESOP pools or expanding such pools.
For example, Scripbox expanding its ESOP pool, Oxyzo introducing a new ESOP pool and Biz2Credit initiating a $12.25 Mn ESOP liquidity scheme are some of the latest developments in the sector.