Ironclad Launches INR 200 Crore Fund to Monetize Startup ESOPs
Ironclad Asset Management has launched a new investment fund, Ironclad Ventures, with a corpus of INR 200 crore and SEBI approval. The fund aims to create liquidity pathways for employees' stock options (ESOPs) in Indian startups.
The fund, consisting of a INR 100 crore base corpus and a INR 100 crore green-shoe option, will focus on working with VC-backed startups to enable staggered ESOP monetization. Each stock option will be convertible into one fully paid-up equity share having a face value of ₹1 each.
Ironclad Ventures is bolstering its team by onboarding seasoned operators and investors in an advisory capacity. The fund will invest between INR 1-4 crore per company, with flexibility for follow-on rounds. The consulting team includes industry experts, financial advisors, and legal consultants.
The launch of Ironclad Ventures comes amidst a significant ESOP grant. Zomato and Blinkit-parent Eternal have approved granting ESOPs worth INR 224 crore to eligible employees.
Founder & CEO of Ironclad Asset Management, Krishna Killa, noted that the fund addresses the low belief in ESOPs due to lack of liquidity. Ironclad Ventures is set to play a crucial role in unlocking the value of ESOP holdings for employees in Indian startups.
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