Interior design tech startup on Tuesday launched employee stock ownership plan (ESOP) as it scales up its operations.
The company said it is allocating 5% of its total equity to permanent employees who have been with the company for over 1.5 years and have made significant contributions, with leadership and critical roles prioritised.
According to the company, the ESOPs are structured with a four-year vesting period and a one-year cliff, with leadership and critical roles prioritised. Flipspaces added that it plans to expand the ESOP pool as business objectives are met and its international footprint grows.
“Implementing an ESOP is not just about sharing ownership; it’s about creating a shared vision for our future. We believe that when our employees have a stake in the company, they are more motivated to contribute to its success. This initiative reflects our belief in investing in our people and our gratitude for their role in shaping the Flipspaces journey,” said Kunal Sharma, Founder & CEO at Flipspaces.
With the announcement, Flipspaces joins a list of startups that have launched ESOPs this year. According to data compiled by TheKredible, over 100 startups have announced ESOP programmes worth around $1.7 billion in the past five years, starting from January 2020.
ESOPs provide a company’s employees with an ownership in the company, allowing them to acquire its shares, often at a discount or as part of their compensation. It is often used to retain talent and bring about a sense of mutual growth within the company.
The company, which has presence in both India and the US, is eyeing a Rs 400 crore revenue run rate, having already achieved an annual revenue of Rs 300 crore in FY24.
Founded in 2011 by Sharma, the Mumbai-based startup uses data and technology to deliver efficient and profitable design solutions for office spaces. It has delivered over 700 mandates, the company added.
