Spinny, a leading pre-owned car marketplace, has significantly expanded its Employee Stock Ownership Plan (ESOP) scheme, adding 2.37 crore (23.7 million) options. The decision, documented in a resolution passed by the board of the Delhi NCR-based startup, enlarges the ESOP pool to a total of 17.8 crore (178 million) options, pending shareholder approval.
Motivating Employees with Ownership
The expansion of the ESOP scheme, known as ESOS 2019, aims to attract, retain, and motivate employees and key contributors by allowing them to share in the company’s future success and acquire a stake in the company. Spinny highlighted the scheme's goal to foster a sense of ownership among employees, contributing significantly to the company's growth and success.
Valuation and Impact
Based on Spinny’s valuation in July 2023, each equity share under the ESOP is valued at INR 54.85. This valuation pegs the total ESOP pool at approximately INR 936.9 crore, assuming a 1:1 conversion of grant options to equity shares.
Growth and Expansion
Founded in 2015 by Neeraj Singh, Mohit Gupta, and Ramanshu Mahaur, Spinny has grown to operate over 36 car hubs across 22 Indian cities, including major metropolitan areas. The company, which entered the unicorn club last year following a $283 million Series E funding round, has raised over $500 million to date. Spinny's backers include prestigious names such as Tiger Global, General Catalyst, Blume Ventures, Accel, and Elevation Capital.
Competitive Landscape
Spinny operates in a competitive market, with key players including Cars24, Droom, CarDekho, and CarTrade. The expansion of its ESOP pool underscores Spinny's commitment to leveraging employee motivation and retention as strategic tools for sustaining growth and competitiveness in the fast-evolving pre-owned car market.
