Companies

Swiggy announces ESOP liquidity programme worth $35-40 mn

Our Bureau Bengaluru | Updated on October 06, 2021

Employees with stock options can participate in the two committed liquidity events in 2022 and 2023

Swiggy has instituted an employee stock option plan (ESOP) with two committed liquidity events in the next two years.

The ESOP programme is estimated to be worth $35-40 million at the company’s current valuation of $5.5 billion, according to a source close to the development. Swiggy raised $1.25 billion from SoftBank Vision Fund II, Prosus and other investors in July 2021.

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These will be the third (July 2022) and fourth (July 2023) liquidity events by Swiggy. The first was in June 2018 and the second in November 2020. As this is a planned liquidity programme, the company has chosen the timeline and all employees holding ESOPs can participate.

The source added that Swiggy had commissioned its second ESOP liquidity programme, via secondary sale, on November 9, 2020, and that exercise was estimated to be worth $7–9 million.

The decision comes on the heels of Swiggy’s food delivery business surpassing pre-Covid levels, non-food businesses like Instamart and Supr Daily witnessing robust growth, and the fund raise of $1.25 billion.

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Girish Menon, Head of HR at Swiggy, said, “Swiggy has democratised food delivery and convenience. 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 our ESOP-holding employees to participate in our committed liquidity events in 2022 and 2023. More importantly, by giving them visibility on the ESOP liquidity, Swiggsters hold the option and flexibility to plan their cash flow and investments.”

Published on October 06, 2021

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