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Tag: Ixigo Esops

  • ixigo Approves ESOS 2025 With 1.2 Crore Stock Options

    Online travel aggregator ixigo has approved a new Employee Stock Option Scheme (ESOS) for 2025, allocating 1.2 crore (12 million) stock options to its employees. This move aims to attract and retain talent while aligning employee interests with company growth.

    ixigo’s board has approved granting stock options of at least 1% of the company’s issued capital to co-founders Aloke Bajpai and Rajnish Kumar under the ESOS 2025 plan.

    Details of the ESOS 2025:

    • Total Number of Options: The ESOS 2025 consists a pool size of 1.2 crore (12 million) stock options. Upon vesting and exercise, these options will convert into an equivalent number of equity shares, aligning with the existing equity shares of the company.
    • Pricing Formula: Each option under ESOS 2025 is priced at INR 93, matching the issue price during ixigo’s Initial Public Offering (IPO).

    This move is proof of ixigo’s commitment to recognising and rewarding its employees’ contributions. By offering stock options, the company aims to match employees’ interests with its growth and success, creating a sense of ownership and motivation.

    Recent ESOP Allocations

    This is not ixigo’s first initiative to reward its workforce through stock options:

    • January 2025: The company allotted 10.58 lakh equity shares to eligible employees under various ESOP schemes.
    • December 2024: Over 4.6 lakh equity shares were allotted to employees under multiple ESOS plans.
    • November 2024: An expansion of the ESOP pool saw the grant of 17.57 lakh stock options under ESOP 2024.

    These consistent efforts highlight ixigo’s dedication to employee welfare and its strategy to retain top talent in a competitive industry.

    About ixigo

    Founded in 2007 by Aloke Bajpai and Rajnish Kumar, ixigo is an Indian online travel portal headquartered in Gurugram, Haryana, India. The platform aggregates real-time travel information, prices, and availability for flights, trains, buses, and hotels, enabling users to plan, book, and manage their trips efficiently.

    Over the years, ixigo has expanded its services and made strategic acquisitions to improve its offerings.

    In June 2024, ixigo went public, listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

    The company’s vision is to become the most customer-centric travel platform, delivering the best user experience by leveraging artificial intelligence, machine learning, and data science-led innovations.

    In Q3 FY25, ixigo posted a revenue of INR 242 crore, marking a 41.5% year-on-year increase from INR 171 crore in the same period last year. The company’s net profit dropped by 49.3% to INR 15.5 crore in Q3 FY25 from INR 30.6 crore in Q3 FY24.

    By continually investing in its employees and expanding its services, ixigo aims to maintain its competitive edge in the rapidly evolving travel industry.

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  • With the Expansion of the ESOP Pool, Ixigo Grants 17.57 Lakh Stock Options

    With the issuance of 17.57 lakh stock options under ESOP 2024, online travel aggregator (OTA) Ixigo has extended its employee stock option plan (ESOP). The company stated in an exchange filing that the issuance of 17,57,156 options under ESOP 2024 was authorised by its nominating and compensation committee.

    Each option will convert into an equal number of equity shares, and they will vest over a four-year period in equal annual increments of 25% each. At an exercise price of INR 93 per share, the options have been granted.

    The Reason Behind This Move

    Ixigo stated that the goal of the allocation is to retain and reward the finest talent, just like it is for issuing ESOPs. Additionally, the business stated that it wishes to provide current staff with additional pushed prizes.

    The announcement was made just days after Ixigo released its second-quarter FY25 financial results. In the September quarter of 2024, its consolidated net profit fell 51% to INR 13.08 Cr from INR 26.70 Cr in the same quarter the previous year. On a sequential basis, profit decreased from INR 14.85 Cr by 12%.  The main cause of the earnings drop was an increase in total tax costs, which in Q2 FY25 was INR 5.26 Cr.

    Acquiring 51% Stake in Zoop Web Services

    In addition to its financial results, the firm disclosed that it had paid INR 12.54 Cr ($1.4 Mn) for a 51% investment in train food delivery startup Zoop Web Services, which was acquired through a combination of primary and secondary share transactions.

    Several public startups have announced the issuance of stock options under ESOP programmes in recent months. IdeaForge, a drone business, gave its staff more than 2,600 stock options earlier. The supply chain giant Delhivery also gave its workers roughly 73,000 stock options earlier this month.

    Current ESOP Scenario in India

    According to a 2024 survey of 160 companies, 78% of them offered employee stock option plans (ESOPs) to their staff, a considerable increase from 59% in 2021. This indicates that ESOPs are becoming more and more popular among startup owners. More firms are now offering ESOPs to all employees, not only senior management, according to a survey done by Saison Capital, XA Network, and Carta. Compared to one in four in 2021, one in three firms now provides these plans to all employees.

     Furthermore, the median ESOP pool size grew from 9% in 2021 to 12.6% in 2024, and 90% of founders now talk about ESOPs with candidates during interviews or job offers, up from 75% in 2021. Additionally, the reasons for providing ESOPs have changed; in 2024, 40% of founders cited cost reductions, up from 28% in 2021.

    The founders cited the necessity to retain people as the second most important reason for putting these plans into action, behind creating a sense of ownership and company culture. Even with this increase, fewer than 30% of founders still fully understand the complexity of ESOPs, a percentage that hasn’t changed since 2021.

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