Amagi Rolls Out over $24 Mn Worth ESOPs & SARs Scheme

SUMMARY

Amagi has introduced worth $2.2 Mn stock appreciation rights scheme (SARs IV)

Its board passed a resolution to issue 147,528 equity shares under the new ESOP scheme and 15000 equity shares under SARs IV scheme at a face value of INR 5 each respectively

In April, the startup bought back 76,533 equity shares at a price of INR 11,999.63 per share from its founders and employees

SaaS unicorn Amagi has introduced an ESOP scheme and a stock appreciation rights scheme (SARs IV) of cumulatively over $24 Mn (over INR 195 Cr).

As per the regulatory filings, Amagi’s board of directors passed a resolution to issue 147,528 equity shares under the new ESOP scheme at a face value of INR 5 each. It also issued 15000 equity shares under SARs IV scheme at a face value of INR 5 apiece.

The two schemes are together valued at $24 Mn after considering the latest price of Amagi’s equity share that is INR 11,999.63 apiece.

In April, the startup bought back 76,533 equity shares at a price of INR 11,999.63 per share from its founders and employees.

The latest development comes after Amagi entered the coveted unicorn club after raising $95 Mn from Accel, Norwest Venture Partners and Avataar Ventures.

Founded in 2008 by Baskar Subramanian, Srinivasan KA and Srividhya Srinivasan, Amagi provides cloud-based broadcast and targeted advertising solutions to broadcasters and television streaming platforms. It facilitates content creators to set up, distribute and monetise live linear channels on ad-free television and video services platforms.

Earlier in March, it claimed to have clocked a 108% year-on-year (YoY) revenue growth. It also asserted that it witnessed a surge of 59% in its customer base in 2021.

According to the startup, it recorded a 112% year-on-year growth in ad impressions generated via its ad insertion platform called Amagi THUNDERSTORM.

In late 2021, it secured $100 Mn from a bunch of investors including Accel, Avataar Ventures, Norwest Venture Partners, and Premji Invest. As part of the deal, Emerald Media and Mayfield Fund exited the startup.

It is to be noted here that, Indian startups have been using ESOPs as an important tool to retain existing employees and attract talents across sectors.

Examples include logistic unicorn Delhivery, which earlier today, passed ESOP schemes despite institutional investors’ disapproval. Its non-public institutions and promoters helped pass the ESOP schemes by voting in the startup’s favour in a company meeting today.

Another startup, iD Fresh Food granted ESOPs worth INR 46 Cr to its employees earlier this month, thereby, taking its overall ESOPs grant to INR 300 Cr till date.

In June, MPL made a slew of changes into the ESOP scheme and employee pay package structure to fortify trust with existing employees and also, attract new ones.

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Update

Share price of Amagi’s ESOP and SARs scheme has been updated in the story