SpeakX Launches ESOP Buyback Worth USD 1 Mn for Employees

Edtech company SpeakX (earlier known as Yellow Class) has introduced its first employee stock ownership plan buyback valued at USD 1 million.

The move will allow early liquidity for its workforce, with 15 of its 20 employees expected to benefit from the programme.

The buyback follows the company's recent pre Series B fundraise of USD 16 million. The round includes performance linked stock grants, allocation based on tenure and a long term ownership plan.

SpeakX offers stock options to employees who complete two years at the organisation and allows a ten year exercise window. The company noted that stock grants are available across departments and are not restricted to senior positions.

So far, SpeakX has raised USD 23.3 million. This includes USD 1.3 million in seed funding led by India Quotient and a USD 6 million Series A round led by Elevation Capital in 2021.

The company stated that the buyback is aimed at giving employees access to liquidity earlier than the usual exit events or late stage financing rounds. The current team of 20 people holds a combined equity of six percent and the stock pool is expected to grow with future fundraises.

Founded by Arpit Mittal, SpeakX uses artificial intelligence to simulate real conversations and offer automated speech correction along with multilingual support. The app reports strong user engagement with learners spending around fifteen minutes per session.

After starting as a live learning platform, the company shifted in 2023 to an AI based app to make English learning easier to scale. The platform is available in India and a few international regions, with plans to expand across Asia and the Middle East.