Tredence Inc., an AI engineering and analytics services company, has announced its first employee stock buyback programme, at the back of a Series A funding of $30 million from Chicago Pacific Founders. Tredence offers to buy back employee stock worth $3.5 million.
This is a global programme, open to their 750 employees worldwide. Eligible employees can liquidate up to 50% of their vested ESOP units. At 6x the book price of each unit, this programme provides liquidity options and will be a wealth creation opportunity for the organisation’s early and high-performing employees.
“The employee stock buyback programme is a testament to our growth and our vision towards fostering a rewarding work culture for our people. 25% of our cap table has always been reserved for employee stock options. As we grow, we want to provide wealth creation opportunities to our employees and enable them to grow along with us,” said Pratap Daruka, Chief Financial Officer at Tredence.
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In the last seven years, Tredence has registered a CAGR of more than 50%. This buyback programme is representative of the organisation’s past growth and faith in its future prospects. “We have a strong sense of ownership at Tredence. Employees are our strongest asset; they turned an uncertain year into one of the brightest years for Tredence. With this buyback programme, we wish to show our employees that their participation and efforts do pay off,” said Shub Bhowmick, Chief Executive Officer, Tredence.
As part of its growth strategy, Tredence is expanding its geographic footprint in Canada, Europe and China. The company is also planning to hire 700 employees in 2021 across markets.