The startup said that the programme will allow employees at all levels and functions to get liquidity on their ESOPs
To date, Swigy has facilitated over INR 1,000 Cr in ESOP liquidity via five such programmes, benefiting more than 3,200 employees
The development comes at a time when Swiggy is gearing up for its public listing
IPO-bound foodtech major Swiggy has initiated its fifth employee stock option plan (ESOP) liquidity programme worth $65 Mn (about INR 543.5 Cr).
In a statement, the startup said that the programme will allow employees at all levels and functions to get liquidity on their ESOPs.
This is among the biggest ESOP liquidity programmes announced by the startup. To date, the company has facilitated over INR 1,000 Cr in ESOP liquidity via five such programmes, benefiting more than 3,200 employees.
Commenting on the development, Girish Menon, head of HR at Swiggy, said, “Employees owning shares of their company creates alignment of incentives and a sharp focus on collaborative excellence, which is a virtuous cycle that we believe in and espouse.”
Swiggy launched the first ESOP programme in June 2018. Following this, it announced two ESOP liquidity programmes worth $35-$40 Mn in 2021. The two tranches under this were completed in 2022 and 2023.
According to a Moneycontrol report, Swiggy cofounders Sriharsha Majety and Nandan Reddy will also sell some shares in the ESOP liquidity programme. Swiggy declined to comment on Inc42’s queries on the issue.
Earlier today, Inc42 reported that Swiggy and its rival Zomato have increased their platform fee to INR 6 per order in key markets like Delhi and Bengaluru.
The latest development comes at a time when Swiggy is gearing up for its public listing. The foodtech major filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) via confidential route in April. The startup is looking to raise over INR 10K Cr via the IPO, which will likely include a fresh issue of shares worth INR 3,750.1 Cr and an OFS component of up to INR 6,664 Cr.
Unlike listed peer Zomato, Swiggy continues to be a loss-making entity and is aggressively chasing profitability. Earlier, Inc42 reported that it was poised to achieve nearly INR 10K Cr in revenue in FY24 on the back of the rising number of Instamart orders, increased platform fees in food delivery, and a growing momentum in its dining out business.
Swiggy’s net loss crossed the INR 4,000 Cr mark in FY23, rising 15% to INR 4,179.3 Cr from INR 3,628.9 Cr in FY22. Operating revenue surged over 40% to INR 8,264.4 Cr in the fiscal year from INR 5,704.9 Cr in FY22, driven by significant expansion in the quick commerce vertical.
