Tiger-Global backed unicorn DealShare, operated by Merabo Labs Pvt. Ltd has expanded its employee stock option (Esop) pool substantially to Rs 455 crore ($60 million).
The grocery and essentials-focused social commerce startup’s board passed a special resolution last month to increase the existing Esop pool from 11,492 options to 20,192 options, as per a regulatory disclosure.
Each option is convertible into 1 equity share of Re 1 with the total quantum of the pool valued at Rs 455.05 crore or $60 million.
The firm also passed a special resolution to alter its Memorandum of Association (MoA). It included a clause for expanding its business of manufacturing products in various categories which are not limited to “food, personal care, home care products and general merchandise in India.”
News website Entrackr first reported the development.
Besides DealShare, startups such as NoBroker, LEAP, Wiz Freight, Ather Energy, Ninjacart, Ecom Express, Pine Labs and VeGrow also expanded their Esop pool in 2022.
After being one of the first startups to join the much-coveted unicorn club this year, DealShare raised an additional $45 million in February from Abu Dhabi Investment Authority (ADIA) at a valuation of $1.7 billion, as an extension of its Series E round.
So far, DealShare has cumulatively raised $393 million.
Competing with the likes of Meesho’s Superstore, GlowRoad, Mall91 and CityMall, among others, DealShare also plans to sharpen its focus on acquiring smaller brands, and small- and medium-sized enterprises (SMEs) among others to fuel its growth in the coming year.
Founded in 2018 by Vineet Rao, Sourjyendu Medda, Sankar Bora and Rajat Shikhar, DealShare offers grocery, essentials and home care products.
The Jaipur-based startup has an inventory-led platform that manages the supply chain and logistics in bigger cities. It operates in over 100 cities and claims to have catered to over 1.5 crore customers with its hyperlocal e-retail business model.
The company targets middle and lower-income groups through a community group buying model. The platform enables users in tier 2 and lower cities to purchase products at competitive prices through a network of micro-entrepreneurs in their community in local languages.
In FY21, DealShare’s annual losses more than doubled to Rs 67 crore, while its revenue from operations 312% to Rs 236.8 crore during FY21 from Rs 57.4 crore in FY20.