MyGate Offers Share Repurchase Program to Reward Loyal Employees

Preeti Bali / 10:59 am / March 8, 2024

Bengaluru-based MyGate, a company specializing in residential society management applications, has announced a program to repurchase a portion of employee-owned shares. This move comes after the company’s impressive financial performance in recent years.

MyGate’s Employee Incentive Program Honors Dedication for Long-Serving Employees

The program allows eligible employees, those who have been with the company for four years or more, to sell back a specific percentage (20%) of their vested shares. This initiative highlights MyGate’s strong financial health and its commitment to rewarding its workforce for their contributions to the company’s growth.

“We are currently in the best financial position we’ve ever been in,” said Abhishek Kumar, co-founder of MyGate. “This strong financial standing allows us to invest in future endeavors and propel further growth.”

Breaking the Pattern: MyGate’s Years of Development Without Venture Fund Assistance

MyGate’s success story is unique in that it achieved significant growth for several years without relying on venture capital funding. The company’s operating revenue has seen a significant increase, jumping 77.3% from Rs 40.1 crore in FY22 to Rs 71.10 crore in FY23. Additionally, MyGate has managed to significantly reduce its losses by 35% during the same period.

The company generates revenue primarily through two channels: subscription fees from resident welfare associations and brand promotion opportunities within the MyGate app. MyGate also achieved a significant milestone by reaching zero cash burn in November 2023.

Despite a decrease in the overall number of employee stock buyback programs in 2023, the total amount of money returned to employees through these programs reached a record high. Data compiled by TheKredible indicates that employee stock buybacks, payouts, and liquidity events totaled nearly $802 million in 2023. This figure is significantly higher than the $440 million and $200 million recorded in 2021 and 2022, respectively. Last month, another company, Classplus, which operates in the educational technology sector, announced a similar program to repurchase shares from over 150 of its employees.

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