Used-Car Marketplace Expands ESOP Pool to Foster Employee Ownership and Motivation
Spinny, the pre-owned car marketplace, has announced a significant expansion of its Employee Stock Ownership Plan (ESOPs) by granting an additional 24 million stock options to its employees, reinforcing its commitment to fostering employee ownership and motivation.
According to filings with the Ministry of Corporate Affairs, the board of the Delhi NCR-based startup has approved the expansion of its ESOP pool to a total of 170.8 million options, subject to shareholder approval.
“The purpose of the ESOS 2019 is to attract, retain, and motivate the company and its subsidiary companies’ employees whose present and potential contributions are important to the success of the company and the subsidiary(ies) of the company by offering them the opportunity to participate in the company’s future and also acquire a proprietary interest in the company by award of options,” the company stated.
Based on Spinny’s last valuation in July 2023, with each equity share valued at INR 54.85, the total ESOP pool size would amount to INR 936.9 crore if all granted options are converted to equity shares at a ratio of 1:1.
While Spinny declined to comment on queries regarding this development, the move aligns with the startup’s ongoing efforts to incentivize and reward its employees for their contributions to the company’s growth and success.
This latest expansion of Spinny’s ESOP scheme follows its introduction of a new ESOP plan in 2022, reflecting the company’s commitment to nurturing a positive work culture and fostering a sense of shared ownership among its team members.
Founded in 2015 by Neeraj Singh, Mohit Gupta, and Ramanshu Mahaur, Spinny has emerged as a leading player in the used-car retailing space. With a presence in 22 Indian cities and over 36 car hubs, including major metros like Delhi, Mumbai, Bengaluru, and Chennai, Spinny has established itself as a trusted platform for buying and selling pre-owned vehicles.
Spinny’s journey to becoming a unicorn, achieved last year with a post-money valuation of $1.3 billion, underscores its rapid growth trajectory and market dominance. The startup’s Series E funding round, led by prominent investors such as ADQ, Tiger Global, and Avenir Growth, further solidified its position in the competitive landscape of the automotive industry.
Having raised over $500 million in funding from investors like Tiger Global, General Catalysts, Blume Ventures, Accel, and Elevation Capital, Spinny continues to innovate and expand its offerings, competing against established players like Cars24, Droom, CarDekho, and CarTrade.
