Deepinder Goyal’s Temple doubles valuation to $375 million, launches ESOP liquidity programme

Deepinder Goyal’s Temple doubles valuation to $375 million, launches ESOP liquidity programme

Temple, the wearable tech startup founded by Eternal founder Deepinder Goyal, has rolled out an employee stock ownership plan (ESOP) liquidity programme to reward some of its early employees, according to an internal memo seen by Moneycontrol.

Around 20 of Temple's 200-220 employees will be eligible to sell up to 25 percent of their vested ESOPs under the programme, the memo said.

The exercise values Temple at $375 million, nearly double the $190 million valuation at which the startup raised its Seed round in February this year.

ESOP liquidity events at early-stage startups are relatively uncommon and, when they do take place, are often conducted at a discount to the company's last funding valuation. In Temple's case, however, the buyback is being executed at a higher valuation amid interest from prospective investors ahead of its next funding round.

"We are seeing strong interest from external investors at a $500 million valuation. Before we close our next round, I want some of this value to reach the people who created it," founder Deepinder Goyal said in a memo to all Temple employees.

"We are offering all eligible employees the option to sell up to 25 pecent of their vested ESOPs at a $375 million valuation -- this is completely optional," he added.

Goyal did not immediately respond to Moneycontrol's request for comment.

The development comes shortly after Moneycontrol first reported that Temple is inching closer to its commercial launch. The startup has partnered with Ethereal Machines and Zetwerk to manufacture its wearable devices, according to the report.

Moneycontrol was also first to report on Temple's $54 million Seed round in December. The fundraise was announced in February. Filings with the Registrar of Companies (RoC) showed founder Deepinder Goyal owns about 28 percent of the company, while employees collectively have a stake of around 10 percent through ESOPs.

Among institutional investors, Steadview Capital is the largest shareholder with a little over 5 percent, followed by Peak XV Partners with just over 3 percent. Vy Capital, QLT Technology, Masada Lake Enterprises, Zerodha founders Nithin and Nikhil Kamath's family office NKSquared are among the other backers.

Among the angels, Eternal Group CFO Akshant Goyal, who owns close to 4 percent, has the highest stake. The startup's cap table also includes several prominent angel investors, including Vijay Shekhar Sharma, Varun Alagh, Abhiraj Singh Bhal, Kunal Shah and Raj Shamani, who together own a small minority stake.

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