Swiggy Allots 38.8 Lakh Shares Under ESOP Scheme

Swiggy’s board has approved an allotment of 38.8 Lakh equity shares under its employee stock option plan (ESOP).

As per the company’s regulatory filing, Swiggy’s board approved the allotment of 38,86,049 equity shares under the Swiggy Employees Stock Option Plan 2024 to its eligible employees.

Based on the stock’s last close of INR 385.15 per share, the newly allotted equity shares are worth INR 149.67 Cr (around $17.4 Mn).

The shares are being allotted at a face value of INR 1, while the exercise price for the allotted shares also stood at INR 1 per share.

Since the start of this year, the company allotted 2.61 Cr equity shares in January, followed by 1.71 Cr shares and 8.64 Lakh shares in the month of February, as well as 1.28 Cr equity shares in April, under multiple ESOP schemes.

Swiggy made its public market debut in November last year, listing at INR 420 on the NSE and at INR 412 on the BSE, above its IPO issue price of INR 390 per share.

Since its listing on the BSE, the stock has lost 6.5% in value.

The aggressive allocation of ESOPs come at a time when the foodtech major has been suffering to sustain the operations of its multiple labels, which were rolled out as a part of Swiggy’s “Platform Innovations” revenue stream.

Earlier this month, the company shut down its SaaS platform Swiggy Minis, and suspended its hyperlocal delivery service ‘Swiggy Genie’, in May.

Despite pulling shutters on some of its brands, Swiggy has not stopped from rolling out new labels, offering innovative services, including Swiggy Crew, that provides travel and lifestyle concierge services app as well as Swiggy Pyng, an at home services offering.

On the financial front, Swiggy’s consolidated net loss magnified 95% year-on-year (YoY) to INR 1,081.2 Cr in Q4 FY25, as quick commerce expansion weighed on the bottom line. Operating revenue stood at INR 4,410 Cr, up 45% from INR 3,045.6 Cr in the year-ago quarter.

Weighed down by the rapid expansion in the quick commerce vertical, Swiggy Instamart incurred a loss of INR 770.9 Cr in the quarter, marking a 182% YoY jump from the INR 272.7 Cr loss it incurred in the same quarter previous year.

Despite the mounting losses, cofounder and CEO Sriharsha Majety recently revealed that he expects the Indian quick commerce market to become a $30 Bn to $40 Bn opportunity in the next three to five years, at an investor event organised by Prosus in London. He also asserted that Instamart is eyeing overall contribution margin breakeven between October and December 2025.