The D2C clothing company has announced that eligible employees can now liquidate their sticks at a 6x premium with 0 strike price. The qualified personnel pool includes senior managers, department heads, and executive leadership. The average age of employees eligible for the repurchase is 36. The startup launched the ESOP program in 2020.
XYXX, a D2C menswear business, debuted its first Employee Stock Ownership Plan (ESOP) buyback program on Monday, April 1.
The Amazon-backed business announced that it launched the ESOP program in 2020 for qualifying employees, who can now sell their stock at a 6x premium with a zero strike price.
Notably, executive leadership and senior managers up to department heads are included in the pool of qualified workers. The average age of employees eligible for repurchase is 36 years.
“Announcing our first-ever ESOP buyback is a proud occasion for the leadership team, including me. It reinforces my conviction in team XYXX’s collective success and the critical role they have played in our growth story. “As a new-age consumer brand start-up, we compete with leading fintech, ed-tech, and e-commerce brands in terms of wealth creation opportunities for our workforce,” said XYXX founder and CEO Yogesh Kabra.
Kabra founded XYXX in 2017 as a direct-to-consumer menswear business that sells products in a variety of categories, including underwear, loungewear, and athleisure.
The startup asserted that its growth was occurring at a 100% CAGR. It had a revenue of INR 57 crore in FY22. It anticipates the expanding Indian innerwear sector to drive future growth. In this market, it competes with D2C firms such as DaMensch and Almo.
The business has not announced the size of its initial ESOP buyback plan. According to its LinkedIn profile, the firm has 259 employees.
XYXX is now among of the growing number of startups that have started ESOP buyback plans this year. While audio series provider PocketFM announced its first ESOP buyback at $8.3 million today, significant brands such as CRED, MyGate, and Meesho have all announced plans for this year.
XYXX claims to have a pan-India presence with over 22,000 touchpoints via leading Multi Brand Outlets (MBOs), a strong modern trade presence with Shoppers Stop and Reliance Trends, among others, and Exclusive Brand Outlets (EBOs) in various important locations. Its products are accessible on its website (xyxxcrew.com) and on e-commerce platforms such as Amazon, Flipkart, Myntra, and Ajio.
