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Empowering Employees: MyGate Announces ESOP Buyback Program for Over 50 Staff Members

MyGate, a community management app, has recently unveiled an Employee Stock Ownership Plan (ESOP) buyback initiative aimed at over 50 of its employees. The decision to implement this program follows the company's strengthened financial performance over the past fiscal years.


With MyGate headquartered in Bengaluru, the buyback program is fueled by the company's impressive financial results, which have shown significant improvement in both the preceding and ongoing fiscal periods.

Under this buyback plan, MyGate intends to repurchase 20% of vested shares from employees who have completed a tenure of four years with the company.


Abhishek Kumar, co-founder of MyGate, expressed confidence in the company's robust financial standing, emphasizing their readiness to drive growth and spearhead new initiatives.


Notably, MyGate achieved remarkable growth without relying on venture capital funding for nearly four years. The company's operating revenue surged by an impressive 77.3% to Rs 71.10 crore in FY23, compared to Rs 40.1 crore in FY22. Additionally, MyGate managed to reduce its losses by 35% during this period.


Revenue generation primarily stems from subscription fees collected from resident welfare associations, along with income from brand promotions on the MyGate app.


A significant milestone for the company was achieving zero cash burn in November 2023, indicating financial stability and sustainable operations.


MyGate's funding journey includes a $56 million Series B round in October 2019, followed by strategic investments totaling $12 million from home service marketplace Urban Company and insurance provider Acko in November 2022.


Although the number of ESOP buybacks decreased in 2023, the total buyback amount and payout set a new record for the year. According to data compiled by TheKredible, ESOP buybacks, payouts, and liquidity in 2023 reached nearly $802 million, surpassing the figures from 2021 and 2022, which stood at $440 million and $200 million, respectively.


This move by MyGate aligns with a broader trend in the startup ecosystem, as companies increasingly recognize the value of rewarding employees through ESOPs. Recently, edtech company Classplus also announced an ESOP buyback program for over 150 of its employees, further underlining the significance of employee equity ownership in fostering company growth and employee retention.

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