Edtech Unicorn UpGrad raises Its ESOP Pool by 28 percent
UpGrad, the edtech unicorn, has raised its employee stock option programme (ESOP) pool by 28%, from 17,25,810 to 22,25,810 options (UPGRAD Education-Employee Stock Option (New) Scheme, 2015). The new ESOP pool will now be worth INR 427 Cr, up from INR 331 Cr previously, representing a 29 percent increase in value.
According to upGrad's July filing, each equity share of the edtech unicorn was priced at INR 1,919.62. (including premium).
The change in the value of the ESOP pool was calculated using the above-mentioned figure.
The Mumbai-based edtech giant became India's fourth unicorn startup in August after raising $185 million from Temasek, International Finance Corporation, and IIFL at a valuation of $1.2 billion.
UpGrad raised $120 million in its first external round from Singapore-based Temasek in April of this year.
UpGrad, founded in 2015 by serial entrepreneur Ronnie Screwvala, Mayank Kumar, Phalgun Kompalli, and Ravijot Chugh, offers higher education courses in partnership with numerous universities. It claims to have a million members worldwide, with 45,000 of them being paid students.
Prior to closing the unicorn round, upGrad purchased Impartus, a video learning platform, for INR 150 crore. UpGrad had declared at the time that Impartus would be renamed upGrad Campus and would become a wholly-owned subsidiary of upGrad.
Rekrut India, a recruiting and employment solutions firm, and The Gate Academy, a Bengaluru-based coaching institute, were acquired by upGrad in 2020. (TGA). TGA marked upGrad's entry into the test prep business, while Rekrut assisted it in entering the recruitment and employment solutions sector.
Employee stock ownership plans (ESOPs) are a mechanism for employees to build wealth. Employers can use an ESOP to keep a valuable employee. Startups have recently been changing their ESOPs scheme to make it more lucrative.
Unacademy issued $40 million in stock options to teachers on its platform earlier this year, marking a first. Meesho, a social commerce platform, just announced a new ESOP programme called MeeSOP, in which employees, regardless of tenure or seniority, can convert up to 25% of their yearly CTC into ESOPs.