The buyback is being done at a premium to the second-last funding round of Whatfix where eight current and former executives sold their vested stock options.
The company has doubled its workforce to over 960 employees and opened four new offices in Singapore, Germany, Australia, and India since its second-last funding round of $90 million which was led by SoftBank Vision Fund II, the firm said in a statement.
Whatfix was valued at around $900 million after its September funding led by private equity firm Warburg Pincus at an over 50% premium to the previous round. The round was a mix of primary fundraising and secondary deals by existing investors accounting for the rest. Early investors Helion Venture Partners and Eight Roads Ventures part-sold stake in this round.
“This program reflects our commitment to both business growth and recognising those who have been integral to our success. We’re fostering a culture of ownership and innovation by offering employees and investors to share in our growth,” said cofounder and chief executive Khadim Batti.
Founded in 2014, Whatfix offers services including a digital adoption platform, simulated application environments for hands-on training, and no-code application analytics to help organisations drive user productivity, ensure process compliance, and improve user experience of internal and customer-facing applications.
Discover the stories of your interest
The firm serves over 700 enterprises, including Shell, Microsoft, Schneider Electric, Cisco, UPS Supply Chain Solutions and Genuine Parts Co.The firm announced its first-ever employee stock ownership plan (Esop) buyback scheme amounting to $4.3 million in July 2021.
Esops are a key retention tool for startups for employees, with several startups announcing Esop buybacks.
On July 15, IPO-bound food delivery platform Swiggy carried out its fifth Esop buyback of $65 million. Similarly, at-home services platform Urban Company on May 23 announced its fifth and largest Esop secondary sale programme, worth Rs 203 crore (about $25 million).
Others who took to this route include society management app MyGate, ecommerce firm Meesho and edtech startups Classplus and Adda247.
