MyGate, the community management app, has unveiled an employee stock buyback program for over 50 employees, following the company’s improved financial performance in the past fiscal years. The buyback initiative entails repurchasing 20% of vested shares for employees with a tenure of four years at the Bengaluru-based firm.
Abhishek Kumar, co-founder of MyGate, expressed confidence in the company’s robust financial position and substantial capitalization, enabling them to support growth and new ventures. MyGate achieved noteworthy financial progress, with operating revenue surging by 77.3% to Rs 71.10 crore in FY23, while also reducing losses by 35%.
Notably, MyGate sustained its growth for nearly four years without relying on venture capital funding. The company primarily generates revenue through subscription fees from resident welfare associations and brand promotions on its app. In November 2023, MyGate achieved zero cash burn, highlighting its financial stability.
Despite a decline in the number of ESOP buybacks in 2023, the total payout and liquidity set a new record, reaching nearly $802 million, as reported by TheKredible. This surpasses the amounts recorded in 2021 and 2022, which were $440 million and $200 million, respectively. In a strategic move, MyGate secured $56 million in a Series B round in October 2019 and later received $12 million from Urban Company and Acko in November 2022. The ESOP buyback trend continues, with Classplus, an edtech company, recently announcing a buyback for more than 150 employees.
