Bengaluru-based MyGate announces ESOP buyback for over 50 employees

MyGate, a Bengaluru-based community management app, has announced an ESOP (Employee Stock Ownership Plan) buyback program, extending the offer to more than 50 employees across all roles and business verticals.

The move comes as a token of appreciation for employees who have dedicated over four years to the company, allowing them to cash out 20% of their vested shares.

Co-founder Abhishek Kumar highlighted the company's robust financial health, stating, "We are in the strongest financial position that we have ever been and well capitalised to fuel our growth and new initiatives."

How well MyGate is performing financially?

The startup has reported a 77.3% growth in its operating revenue to Rs 71.10 crore in FY23, up from Rs 40.1 crore in FY22. The growth is attributed to a significant increase in subscription revenue from resident welfare associations and advertising revenue from brands on the MyGate app.

Kumar added, "Our ad business is ramping up...which contributes 80-85% of the revenue." Furthermore, MyGate achieved cash breakeven in November 2023, showcasing its efficient management and operational success.

MyGate funding and investors 

MyGate's journey to financial success was bolstered by strategic funding rounds, including a $56 million Series B round in October 2019, followed by a strategic infusion of $12 million from Urban Company and insurance provider Acko in November 2022.

Its revenue model, primarily based on subscription fees and advertising, has proven effective, with expectations of a 38-40% year-on-year growth in FY24.

Besides Acko and Urban Company, MyGate is backed by Tiger Global Management, Prime Venture Partners, Tencent, and JSCapital.

What does MyGate do?

MyGate is a comprehensive mobile application tailored for the seamless management of gated communities, enhancing the daily experiences of everyone involved, from residents and visitors to management committees and security personnel.

The startup streamlines a variety of community management tasks, making operations like visitor entry authorization, maintenance bill payments, service requests, and amenity bookings a matter of just a few clicks.

Its extensive suite of features includes MyGate ERP, a specialized tool for managing society accounting and payments, addressing complaints efficiently, and keeping the community informed through digital notice boards.