XYXX, the D2C menswear brand, announced on Monday its first Employee Stock Ownership Plan (ESOP) buyback program.
The Amazon-backed startup stated that it had initiated the ESOP program in 2020 for eligible employees, who can now sell their stocks at a premium of 6 times with no strike price.
Notably, senior managers, department heads, and executive leadership are included in the pool of qualified employees. The average age of the buyback-eligible employees is thirty-six.
XYXX’s founder and CEO, Yogesh Kabra, expressed, “The announcement of our first ESOP buyback is a moment of pride for the leadership team, particularly for me. It reinforces my confidence in the collective success of Team XYXX and their indispensable role in our journey of growth. As a modern consumer brand startup, we stand alongside top fintech, ed-tech, and e-commerce brands in offering wealth creation opportunities for our workforce.”
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Established in 2017 by Kabra, XYXX is a D2C menswear brand offering a range of products including underwear, loungewear, and athleisure.
The startup reported a growth rate of 100% CAGR and recorded a revenue of INR 57 Cr in FY22. It anticipates leveraging the expanding Indian innerwear market to drive its future growth. In this sector, it competes with D2C startups like DaMensch and Almo.
The startup has not disclosed the size of its first ESOP buyback plan. According to its LinkedIn profile, the company has a team of 259 employees.
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With this move, XYXX joins the growing number of startups launching ESOP buyback plans this year. Today, the audio series platform PocketFM also announced its first ESOP buyback worth $8.3 Mn. Notable companies like CRED, MyGate, Meesho, and others have also unveiled similar plans this year.
According to a survey, approximately 80% of over 400 Indian startup founders surveyed believe that potential employees may be reluctant to join startups following a series of mass layoffs. The report also revealed that 55% of startups are relying on ESOPs to attract the Indian workforce back to the startup ecosystem.
Continue Exploring: Meesho announces its largest ever ESOP buyback, allocating INR 200 Cr for employees
