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Exclusive: Unacademy Expands ESOP pool, allots 11,973 fresh shares to Employees

Edutech startup Unacademy has recognized and rewarded its employees by topping up 11,973 options to its existing employee stock options (ESOPs). According to the new regulatory filings, the company passed a special resolution to amend its existing ESOP policy to increase its existing pool from 53,044 to 65,017 options.

Logo of edutech major Unacademy

This is the third time that Unacademy has increased its ESOP pool in the current year. The company first increased its pool in January when it added new 4,836 shares to the then existing scheme and executed a phantom agreement with its three co-founders. This move was followed by company’s decision in May to offer 12,018 fresh shares to its employees and increase its pool further to 53,044 options.

At the time of increasing its employee stock options in May, Unacademy’s ESOP pool was valued at nearly Rs 312.4 crore or $42 Mn. However, Techpluto could not ascertain these figures independently.

Notably, the Bengaluru based company had carried out an ESOP buyback option in June last year by buying 30% of the vested stocks from its employees.

Considering that Unacademy has been on a good fundraising spree, it can surely afford to increase its ESOP regularly. The company attracted $50 Mn in a Series D funding round in June last year, followed by worth $110 Mn Series E round in March this year.

There is an increasing possibility that the company may raise more funds by the end of the current year. Sources claim that Japanese giant SoftBank is eager to take a stake in the Unacademy.

Notwithstanding the good fund raising spree, Unacademy needs to do a lot more to improve its balance sheet. According to company’s FY19 financial statement filed with the ROC, company’s total expenses stood at INR 112 crore while its earning revenue stood at Rs 12 crore. As for its annual loss, company’s annual loss stood at approximately Rs 90.20 crore.

The wide gap between the company’s earnings and expenses is surely a cause of concern.

 

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