Health tech Startup Healthifyme announced on Monday an equity buyback program worth $12 Mn or INR 90 Crore. The buyback program will give scores of its employees and early angel investors handsome return on their investment. The company said in its press release that nearly 100 employees constituting former and current employees will get benefit from this program.
Healthifyme has also disclosed the names of some investors who will be benefiting from this equity buyback program. These names include prominent angel investors like Gopal Srinivasan, MD, TVS Capital Funds and Micromax. The company revealed that these investors will secure nearly 15X return on their investment. However, company refused to shed light over whether these angel investors will be making full or partial exit from the company.
The latest development has come barely a month after the company announced a $75 Mn fund raising round. The funding round was led by several well-known PE firms including LeapFrog Investments and Vinod Khosla backed Khosla Ventures. This series C round, by the way, was company’s largest fund raising round till date.
It is very typical of Indian start-ups to announce equity buyback program after raising a big funding round. Therefore, Healthifyme’s announcement of a buyback program should not come as a major surprise.
Commenting on the buyback program, Tushar Vashisht, CEO & Co-founder, HealthifyMe said, “As part of our employee retention program, we are excited to provide liquidity to our teammates who have worked tirelessly through the years shaping our vision to reality. I am sure we will continue to do more of this in years to come as well.”
The company recently claims that it recently crossed 25 million downloads. The company further added that it is on track to hit $50M annual recurring revenue within the next six months.