Fleet-tech management startup LocoNav announced on Thursday that it has earmarked $3 Mn for its maiden ESOP and equity buyback scheme. The company said that more than 50 existing and former employees are eligible to participate in the ESOP scheme and will be allowed to partially liquidate their vested ESOPs. LocoNav’s equity buyback scheme, on other hand, will give an exit to early investors, the company further added. However, the startup did not share details about which investors will be making an exit and whether they will be making a partial or complete exit.
LocoNav’s first-ever ESOP and equity buy-back scheme will give both employees as well as investors a return of nearly 150% on their investment, the company confirmed in its press release.
The development comes barely a month after LocoNav raised $37 Mn in a Series B round led by Quiet Capital and Sequoia India Capital. The company also recently appointed Google’s Anjali Joshi in its board of directors team. Following its Series B round, the company’s total external funding amount has now reached to $47 Mn.
Notably, another well-funded startup InVideo has today announced it first ever ESOP buyback. Techpluto’s team will be covering about this in another article.
Commenting on the ESOP and equity buyback scheme, co-Founders – Shridhar Gupta and Vidit Jain, said, “Our exponential growth in the past few years represents the relentless contribution of our employees and the trust our early investors placed in us. We feel honored to have their support, some of whom have been our cheerleaders since the very beginning. This ESOP and equity buyback scheme is our way of showing gratitude, empowering them with wealth creation, and enabling collective ownership as the business scales across markets.”
Incorporated in 2016, LocoNav app has been apparently used by a half a million vehicle & fleet owners. The company leverages newer technologies like Artificial Intelligence to efficiently manage the fleet operations.