“Got an email from my ex employer @unacademy today saying our exercise window has been changed from 10 years to 30 days forcing us to cough up a huge amount to pay taxes or forfeit our vested esops. @gauravmunjal this is an awful thing to do. Makes the startup industry look bad,” the user posted.
He tagged CEO Gaurav Munjal in his post. There was no immediate comment from Munjal.
The company’s latest valuation stands at approximately Rs 2,650 crore, based on a formal merchant banker assessment. Despite this, the email warned that equity shares in a private limited company are illiquid and carry risks, including no guaranteed payout during a liquidation event, as preference shareholders hold superior rights.
Unacademy started as a YouTube channel in 2010. It launched an app in 2015.
Employee Stock Option Plans (ESOP) is a widely adopted methodology used by modern startups during their initial stages. It plays an important role in attracting and retaining talent for startups.
Once the employee has fulfilled the conditions or the relevant time period has elapsed, these employee stock options are vested. At this time, the employee can opt to buy them, and they are often offered lower than market price (exercise price).
ESOPs are taxed at two stages in the hands of the employee: at the time of exercise as a perquisite (salary income), and at the time of sale as a capital gain.
