Swiggy announces ESOP liquidity programme worth $35-40 million

Food-tech platform Swiggy has announced that it will allow employees to cash in stock options worth $35-40 million over the next two years in July 2022 and 2023.

The programme is pegged at $35-40 million at Swiggy’s $5.5 billion valuation following its $1.25 billion funding round in July, shared reports.

All employees with stock options will be eligible to participate. The value of the stock options will increase in tandem with the company’s valuation.

“As Swiggy grows, we want our team to grow with us and enjoy the fruits of their hard work and valuable contributions. This is an industry-first initiative whereby we are democratising wealth creation by enabling all employees with stock options to participate in liquidity events,” shared Girish Menon, head of human resources, Swiggy by adding that more importantly, by giving them visibility on the liquidity programme, they are giving them the flexibility to plan their cash flow and investments.

Swiggy had conducted its first share buyback in June 2018. Its second, in November 2020, was commissioned via a secondary sale. The value of that buyback was estimated to be in the range of $7-9 million.

The Bengaluru based food delivery platform also mentioned that its food delivery business had surpassed pre-Covid levels and non-food businesses were witnessing robust growth.

“Swiggy and its board have decided to institute a one-of-its-kind programme to enable consistent wealth creation for employees through two distinct liquidity events in the next two years,” added the statement.