Prosus, Vy Capital, and Dharana Capital to Buy Urban Company Shares Worth Rs 203 Crore

Urban Company, a leading on-demand home service firm based in India, has recently made headlines with its announcement of a significant Employee Stock Ownership Plan (ESOP) sale. The company disclosed that Dutch investment firm Prosus, along with Vy Capital and its subsidiary Dharana Capital, will acquire shares valued at Rs 203 crore from both current and former employees. This move marks Urban Company's fifth ESOP sale, showcasing a robust commitment to enabling wealth creation for its team members through stock ownership.

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The transaction involves a total secondary transaction amount of approximately Rs 203 crore, offering Urban Company's staff the chance to liquidate their vested stocks. Dharana Capital, an extension of Vy Capital and existing investor Prosus, are set to purchase these shares, highlighting the continued investor confidence in Urban Company's business model and growth prospects.

Since its inception, Urban Company has granted ESOPs to 1,593 individuals, including employees and ex-employees. Out of these beneficiaries, 784 have taken part in five secondary ESOP sale programs, cumulatively liquidating ESOPs worth Rs 306 crore. This strategic move underscores the company's dedication to recognizing and rewarding the hard work and loyalty of its workforce.

Urban Company has allocated 11 per cent of its current fully diluted cap table to ESOPs. This allocation covers vested, unvested, and sold ESOPs, illustrating the company's comprehensive approach to employee stock ownership as a tool for wealth creation. The ongoing ESOP secondary sale program has seen participation from about 450 employees and ex-employees, amounting to Rs 203 crore.

Raghav Chandra, Co-founder and CPTO of Urban Company, expressed his enthusiasm for the success of the ESOP program. He stated, "We have actively pursued secondary sales opportunities for our team members to establish ESOPs as a credible wealth creation asset. It is exciting to see that about 450 employees and ex-employees had the opportunity to participate in the ongoing ESOP secondary sale programme amounting to Rs 203 crore." Chandra's comments reflect Urban Company's commitment to enhancing and expanding its ESOP program in the future.

This initiative not only benefits Urban Company's employees by providing them with a tangible stake in the company's success but also reinforces investor confidence in the firm's growth trajectory and business model. As Urban Company continues to expand its services and market reach, such strategic moves are likely to further solidify its position as a leading player in the on-demand home service industry.