Whatfix announces $58-mn ESOP buyback and investor liquidity event

Khadim Batti and Vara Kumar, Co-founders, Whatfix (1)

Whatfix, a business-to-business digital adoption platform, on October 7 announced its fourth liquidity program of $58 million, which includes ESOP (Employee Stock Option Plan) as well as a secondary sale by its existing investors like Helion and Eight Roads, followed by its $125-million Series E fundraise.

"This program reflects our commitment to both business growth and recognizing those who have been integral to our success. We’re fostering a culture of ownership and innovation by offering employees and investors to share in our growth." said Khadim Batti, cofounder and CEO of Whatfix in a media statement.

Eligible current and former employees have been given the opportunity to liquidate a portion of their vested units.

"From time to time, the company has consistently facilitated secondary sales, ensuring that its employees and investors benefit directly from the company’s growth," Batti added.

On September 25, the firm raised $125 million in its Series E funding round, led by private equity firm Warburg Pincus with participation from existing investor SoftBank Vision Fund 2. Sources told Moneycontrol that the deal was valued at $790 million pre-money and around $870 million post-money.

In June 2021, Whatfix raised $90 million in a funding round led by SoftBank’s Vision Fund 2. Existing backers Eight Roads Ventures, Sequoia Capital India, Dragoneer Investment Group, F-Prime Capital and Cisco Investments also invested in the Series D round.

The firm announced an ESOP buy back during its series B and C fundraise event.During its Series D round of $90 million, the firm announced a buy back of $4.3 million.