Shadowfax Expands ESOP Pool By Adding Options Worth INR 62 Cr To Retain Talent

SUMMARY

The logistics startup earlier this year passed a resolution where it had amended its ESOP 2016 scheme by adding 20,299 equity shares

Post the addition, the total ESOP 2016, which comprises 86,033 options, will be worth INR 263.5 Cr

The startup expanding its ESOP pool coincided with Shadowfax raising $100 Mn in its Series E funding round

Logistics startup ShadowFax earlier this year has expanded its ESOP pool by adding more options. The TPG NewQuest-backed logistics startup earlier this year passed a resolution where it had amended its ESOP 2016 scheme by adding 20,299 equity shares.

The document filed in the Registrar of Companies, the startup said these options will be converted equity shares in an 1:1 ratio.

Based on the share price at which Shadowfax raised its Series E funding, the additional equity shares will be worth around INR 61.9 Cr, and post the addition, the total pool of the ESOP 2016 plan, comprising 86,033 options, will be worth INR 263.5 Cr.

Explaining the reason behind the increase in ESOP options, the startup in the document said, “The object of the Plan is to attract, encourage and retain the talent in the management cadre and to enable such employees to participate in the long-term growth of the Company and seek convergence of interest of shareholders and eligible employees such that eligible employees consciously work towards value creation for the shareholders.”

Entrackr was the first to report on the ESOP pool expansion.

The expansion of its ESOP pool coincides with Shadowfax’s $100 Mn Series E funding round in February 2024. TPG NewQuest, Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm, and Trifecta Capital participated in the round.

This was the startup’s first fundraise since 2015.

Founded in 2015 by Vaibhav Khandelwal and Abhishek Bansal, it provides hyperlocal and on-demand deliveries to businesses. Shadowfax claims to be operational in 15,000 postal codes across the country and process around 15 lakh orders per day.

According to Inc42’s Indian Startup Founder Survey 2023, about 55% of the polled founders said they were banking on ESOPs to lure and retain workforce in 2024.

For instance, ahead of its earnings call for Q4FY24, beauty and fashion ecommerce major Nykaa announced today that it has granted 4.05 Lakh stock options to its employees.

Last week, during quarterly reports, Delhivery announced allotment of 75,000 options under its Employee Stock Option Plan (ESOP) 2012.

Earlier this year, Bengaluru-based Meesho announced the launch of an INR 200 Cr around $25 Mn employees stock ownership plan (ESOP) buyback programme that would benefit around 1,700 past and current employees.