Bizongo Concludes Maiden Buyback, Liquidates ESOP worth $3.7 million

MUMBAI:
B2B e-commerce and supply chain enablement platform Bizongo has announced the completion of its first Employee Stock Ownership Plan (ESOP) monetization program worth $3.7 million. While 102 of Bizongo’s former and current employees were eligible for the buyback, only 70% of employees opted to liquidate ESOPs from the pool worth $4.8 million.

Through this move, the startup aims to create wealth for employees and give them a chance to benefit from the growth achieved since last year. Considering that Bizongo’s valuation has taken flight over the years, employees were able to generate significant wealth. The buyback further helped employees to build a second source of income and enhance their financial planning. The company will also use the buyback to build world-class teams and acquire more talent.

ESOPs have been a part of the company’s talent welfare program strategy right from the beginning and given across all levels of employees at different stages of their tenure with the company in the form of joining bonuses or annual bonuses and rewards.

Ankit Tomar, Co-founder and CTO at Bizongo said, “Bizongo has witnessed hyper-growth in revenue over the past few years and this is a direct outcome of the hard work and dedication of CULTivators (Bizongo employees, who together form the organizational culture – CULT). Our employees are an invaluable asset and partners, who have helped us achieve newer heights and remain profitable even during the pandemic. Today, we are a market leader in the customized goods category and this ESOP repurchase is our little way of sharing our success and growth with all who have been a part of Bizongo’s journey so far”

The ESOP buyback comes on the heels of the platform’s recent entry into the soonicorn club and a fundraise of $110 million in Series D round led by Tiger Global Management, among others.

Launched in 2015, Bizongo is on an aggressive growth path. The company’s core platforms – Procure Live and Partner Hub – have over 300 enterprise customers and a base of over 3,000 partner factories. Through strong partnerships with more than 15 financial institutions, the Supply Chain Financing (SCF) vertical has processed over INR 1200 crore in working capital lines to MSME vendors, registering an 8X growth since last year.