Amazon-backed Acko concludes first ESOP liquidity programme

Mumbai: Amazon-backed general insurance startup Acko has concluded its first ESOP liquidity programme worth $2 million for around 40 of its long-term team members, co-founder Ruchi Deepak told ET Monday.

Under the programme, employees who have completed three years at the organisation were given the option to liquidate 40%-100% of their vested employee stock ownership plan. The exercise valued the Bengaluru-based insurer at around $500 million, or at a premium over its last round of funding, according to a person with knowledge of the matter.

“We have completed three years of operations with one year of pandemic uncertainty. Throughout this period, our people remained our pillar of strength. Some of them had joined even before the company received its license,” Deepak said. “Former employees were therefore also included on the basis of their eligibility. This liquidity is not linked to an external strategic or funding round, it is just an extension of the company commitment towards wealth creation.”

Acko’s ESOP liquidity programme comes at a time when several leading fintech firms in India such as Cred, Razorpay and PhonePe have initiated similar buyback exercises after raising new capital.

Acko had in September 2020 raised $60 million in a Series D round led by Munich Re Ventures with participation from existing investors Amazon, RPS Ventures and Intact Ventures.


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