Urban Company partners can now get shares in the company

• Urban Company was valued at $2 billion in June last year.
• The company claims that this is the first time that a tech company has decided to offer stock options to their contractual employees.
• Urban Company's chief executive said that the partners will have to pay a nominal price for the shares.

The service professionals with Urban Company will now be able to get a stake in the on-demand home and beauty services company.

The company – valued at over $2 billion in June 2021 – has termed this project as Partner Stock Ownership Plan (PSOP).

Notably, companies usually offer stock options to their employees under the Employee Stock Ownership Plan (PSOP). The company claims that this is the first time that a tech company has decided to offer stock options to their service partners.

The company plans to issue stocks worth ₹150 Crore in the next 5-7 years. It has already received approval to allocate the first tranche of ₹75 crore. The company believes that the plan can help 20,000-30,000 professionals associated with the platform.

Urban Company's chief executive Abhiraj Singh Bhal emphasised that the partners will have to pay a nominal price, called exercise price, to buy these shares.

Developing story…

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