CityMall conducts first Esop buyback
CityMall has conducted its first Employee Stock Ownership Plan buyback programme which saw participation from over 50 company employees across its senior management and core team. The social commerce platform’s Esop totalled $1.3 million, ET Tech reported.
“During this time, we have been able to pull off an Esop buyback, and it is sort of a testament to the fact that we are well placed right now,” said CityMall’s co-founder and chief executive Angad Kikla, the Economic Times reported. “Laying off [staff] had nothing to do with the fundraise or the runway; it was a restructuring because we intended to recalibrate our operating model.”
In March this year, CityMall raised $75 million in funding. In June, the business divested itself of 191 employees in what the business described as a move to adapt to the changing economic climate.
Angad Kikla and Naisheel Verdhan founded CityMall in 2019 and the business is now present in 22 Indian cities and towns in the states of Delhi-NCR, Uttar Pradesh, and Haryana. CityMall works with around 15,000 ‘community leaders’ who are micro-entrepreneurs and work as its marketing and logistics partners in e-commerce dark towns. In these areas, shoppers can order online with a ‘community group purchase’ model with products ranging from fast moving consumer goods such as personal care products to groceries and home ware among other items.
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