So Bewakoof got acquired by Aditya Birla group and sent a mail to employees that their ESOPs are now worthless “as determined by the board.” I mean, I know what they’re doing is completely legal, they must have covered themselves with escape clauses, but how are founders okay with this? They basically ripped off and wiped off the wealth of the very employees that worked for them for years. Shameful, man! Never buying from this shit company again. Not that it will matter, but won’t give a penny to this hideous organization.
IMHO, the innocent employees are defrauded.
Atleast they are standing true to their name. Kya bewakoof banaya!
That’s sad
I don’t think it is legal that they can scrap granted espos by just mentioning a clause in takeover if employee has exercised them.
Especially because stock options are exercised by employees by giving money to company. Unless company declares bankcruptcy the face value of those stock options is intact.
This will be like running away with money thus, fraud
Most employees don’t exercise the options until they leave the company to delay the tax liability or to compensate the tax liability by adjusting the number of options that they get.
Yeah if not exercised then they might take it back saying its company’s discretion. Still I doubt that it is legal
Was this hostile takeover type of situation? How does it even work?
Not hostile, bewkoof was a private organization. It seems like a distressed sale, but that’s not how it is being covered in media.
Oh, still the employees must be feeling awful.
Hi, I am journalist writing on PEs/VCs and startups. Can we get that email sent to employees. healthyburrito@proton.me
Well , it’s in the name
Horrific scenes in the Indian startup ecosystem. From being on the verge of an IPO to raising an emergency round which shall lead to the sudden death of employee ESOPs. Crores of wealth destroyed for the employees.
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First unicorn of 2024 ?
Also weekly reminder that edtech is a scam
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Joined this organization as an SDE. Initially, had a great experience for the first few months, got to learn a lot. However, eventually, the management (co-founder) started showing his true colors where they would favor a few people who ...
Name and shame
