Insurtech company Acko on Tuesday announced that it has concluded its first employee stock options (ESOP) liquidity programme worth $2 million.
Acko employees, who completed three years at the company by December 31, 2020, were eligible for the programme, a statement said. They could liquidate 40-100% of their vested ESOPs, depending on their overall stock allocation.
Former employees who served the company for three years were also eligible.
The Mumbai-based startup funded the buyback programme using its operational capital, the statement said.
“We have completed 3 years of operations with one year of pandemic uncertainty. Throughout this period, our people remained our pillar of strength. Some of them had joined even before the company received its license. The company is humbled by this unwavering trust and it was time for us to deliver on their sentiments including the value that they have created by building ACKO. Former employees were therefore also included basis their eligibility,” Ruchi Deepak, co-founder of Acko, said in the statement.
“This liquidity is not linked to an external strategic or funding round, it is just an extension of the company's commitment towards wealth creation. Employee’s growth should be directly proportional to the company’s growth and should be real and not just on paper,” she said.
Acko runs a long term incentive plan (LTIP) that allocates stock options to every employee by default, to foster a risk sharing and rewarding work culture. The startup intends to continue this trend of ESOP monetisation with every stage of the company's growth.
Founded in 2016 by Varun Dua and Deepak, Acko is a D2C digital insurance company. It also offers bite-sized insurance products, such as rider insurance, mobile and appliance protection, and ticket cancellation services in partnership with over 18 internet companies such as Ola, OYO, redBus, Zomato, HDB Financial Services and UrbanCompany.
The company said it has distributed insurance policies to over 60 million unique customers and issued 800 insurance policies in 24 months of operations, without specifying the dates.