Byju’s Will Give Rs 3000 Crore To All Employees Via 1.7 Lakh ESOP Shares; Biggest In India?

During these gloomy times of pandemic, some of the businesses could make a mark this year and one of them is Byju’s.

This is the only consumer internet company along with Flipkart who could raise over $1 billion along this year.

3,000 Crore ESOPs

With this gain, the company’s valuation raised to $11.1 billion in September as compared to $8 billion in January. 

Now the company plans to add a couple of hundred million dollars to its existing ESOP pool in reward of the outstanding performance.

In the same regards, the board of directors of Byju’s have passed a special resolution to approve the reservation and allocation of a pool of 71,698 equity shares.

Further, this allocation will be assigned towards additional management subscription rights and ESOPs. 

It is noteworthy here that the newly allocated pool will be added to the existing pool reserved under “Think and Learn Pvt Ltd ESOP 2019.”

According to the estimation, this new edition of the ESOP pool is worth Rs 1527.5 crore which is $208 million.

A Part Of Large-Scale Consumer Internet Startups

With this new addition, Byju’s becomes the part of some of the large-scale consumer internet startups in the country having a wide ESOP pool at Rs 3,000 crore mark. 

If we talk about the other startups, Paytm is valued at $16 billion with an ESOP pool exceeding Rs 3,000 crore. 

The food ordering and delivery service provider, Swiggy has expanded its ESOP pool to Rs 1,589 crore.

The other player Oyo with the recent addition of over Rs 1,050 crore worth stocks has crossed Rs 4,300 crore mark. 

Further, the company was valued around $3.6 billion, as per the valuation report (based on discounted cash flow method or DCF) filed by Byju’s on July 31. 

During the Series F round, many investors such as Silver Lake, BOND Capital, General Atlantic and Tiger Global paid up to 174% or 2.7X premium on the acquisition of each share. 

Which basically demonstrates the company’s great confidence in the future potential of the edtech conglomerate. 

Recently, Byju’s had acquired WhiteHat Jr in an all-cash deal worth $300 million.

Currently, they are in an advanced stage of take over in doubt clearing app DoubtNut in about $125 million and hinted to acquire more startups in the space. 

In another development, there are reports of Byju’s threatening the right to dissent and criticise on social media.