OfBusiness, a startup providing raw material procurement and financing solutions to SMEs in the manufacturing and infrastructure sectors, has recently undertaken an Employee Stock Ownership Plan (ESOP) liquidation program valued at INR 100 crore. This initiative has benefitted over 100 employees and represents the latest in a series of ESOP liquidations by the company.
I. Timeline and Scale of the ESOP Liquidation
The ESOP liquidation program initiated earlier this year witnessed significant progress, with more than INR 70 crore liquidated in just the last three months. The company has indicated that the final tranche of this program is expected to be completed by the end of next week, allowing employees to benefit from their accrued stock options.
II. Historical Context of Previous Liquidations
OfBusiness has a track record of conducting ESOP liquidations over the past couple of years. In 2021 and 2022, the company conducted liquidations valued between INR 150 crore and INR 200 crore. These prior programs have had a noticeable impact on employee morale, proving to be a motivating factor for retention and loyalty within the firm.
III. Secondary Funding and Investor Exit
The recent ESOP liquidation is part of OfBusiness’ broader strategy involving secondary funding deals. The participation of high-net-worth individuals (HNIs) and family offices has been significant in these liquidations. Notably, Zodius Capital, an early investor in the company, recently completed a secondary sale valued between $100-120 million, marking their exit from the venture, which underscores the attractiveness of OfBusiness to investors.
IV. Future Plans Including IPO
Looking ahead, OfBusiness is considering a further secondary round of funding, projected to be valued between $200 million and $250 million. This is a strategic precursor to the company’s planned initial public offering (IPO), expected to raise $1 billion in the second half of 2025. The company’s leadership also hints at the potential for another ESOP liquidation targeting mid- and high-management levels, further aligning employee interests with company growth.
V. Company Background and Growth Trajectory
Founded in 2016 by a team of visionaries including Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta, and Nitin Jain, OfBusiness has focused on procuring essential raw materials—such as metals, chemicals, and building products—for SMEs. The firm has attracted a wealth of investment from major players like Tiger Global and the Softbank Vision Fund, raising over $800 million to support its growth trajectory. Furthermore, the company is streamlining operations by merging subsidiaries as it prepares for its anticipated IPO.
VI. Conclusion
The recent ESOP liquidation program launched by OfBusiness, amounting to INR 100 crore, has positive implications for over 100 employees, fostering a sense of ownership and commitment within the organization. With plans for an IPO on the horizon, these initiatives not only reinforce the company’s dedication to its workforce but also position it strategically for future growth in the manufacturing and infrastructure sectors.
Frequently Asked Questions (FAQ)
- What is an ESOP? An Employee Stock Ownership Plan (ESOP) is a program that provides a company’s workforce with an ownership interest in the company.
- How does ESOP liquidation work? ESOP liquidation allows employees to sell their shares back to the company at a predetermined value, providing them with immediate financial benefits.
- What are the benefits of ESOPs for employees? ESOPs align the interests of employees with those of the company, provide additional retirement income, and enhance employee morale and retention.
