Leading push notification platform, iZooto has announced its maiden ESOP buyback program worth $1.35 million for all shareholders including current and former employees.
Valued at 40 times of the issue price, 40 percent of iZooto’s employees with vested options will be eligible to participate in this process.
Commenting on the announcement, Prasanna Krishnamoorthy, Partner at global SaaS accelerator Upekkha, and a mentor to iZooto founders said, “The iZooto founders have set a new bar for a Value SaaS company, that is building a software product business capital-efficiently, delivering value to customers and as a consequence creating real wealth both for their employees and investors early in their journey. Upekkha is proud to be the only outside shareholder in iZooto and is excited to see them issue dividends and do an ESOP buyback from employees – incredibly rare at an early-stage business.”
With this announcement iZooto ESOP pool now covers 72 percent of the organization. In an additional windfall for shareholders, iZooto also announced a dividend of Rs 275 per share before Diwali.
Speaking on the announcement, Neel Kothari, CEO of iZooto said, “iZooto’s employees have been the bedrock of our success from the very start. Our profitable growth over the last four years has only been possible because of the dedication, diligence, and passion of our entire team.”
“We’ve always believed in creating value for all of our stakeholders. Since we found ourselves in the unique position of being profitable so early in our lifecycle, we were determined to give every employee the chance to share in the wealth creation and grow with us,” Neel added.
Qualifying ESOP holders were allowed to liquidate up to 25% of their vested units based on a specified scheme.
iZooto also plans to expand its presence in the Gulf Cooperation Council (GCC) and North American markets in the coming years.