SpeakX Introduces $1 Million ESOP Buyback Program

SpeakX, an innovative edtech company previously known as Yellow Class, has initiated its inaugural ESOP buyback programme valued at $1 million, providing early liquidity options for its employees. The company indicated that 15 of its 20 employees will take advantage of this buyback.

Details of the Buyback Program

This buyback follows closely behind SpeakX’s recent achievement of raising $16 million in a pre-Series B funding round, which includes performance-linked stock grants, allocations based on tenure, and a comprehensive long-term ownership structure. Employees who complete two years with SpeakX are eligible to receive ESOPs, which come with a 10-year exercise window. Notably, these grants are accessible across all departments, not just those in senior roles.

Funding History

To date, SpeakX has successfully attracted a total of $23.3 million, comprised of $1.3 million in seed funding led by India Quotient and a $6 million Series A round led by Elevation Capital in 2021. SpeakX expressed that this initiative is crafted to provide liquidity much sooner than what is typically available during startup exits or later-stage funding rounds.

Equity and Team Structure

The firm noted that its team of 20 members collectively holds 6% equity, with the ESOP pool expected to grow as further funding rounds take place. SpeakX, established by Arpit Mittal, focuses on simulating real-world conversations and offers automated speech correction alongside multilingual support. The platform boasts impressive engagement statistics, with users spending around 15 minutes per session.

Recent Developments

Initially launched as a live learning platform, SpeakX transitioned in 2023 to an AI-powered learning application aimed at making English language acquisition more accessible and scalable. Currently, the SpeakX app is available in India and select international regions, with aspirations for expansion across Asia and the Middle East.

Business Metrics

The company also released updated performance metrics, reporting a customer acquisition cost (CAC) payback period of just one day, a 3.7x lifetime value to CAC ratio within six months, and a 35% retention rate at the third month.