Swiggy launches fifth ESOP liquidity programme worth $65 million ahead of IPO

On-demand convenience platform, Swiggy, on July 15 announced its fifth ESOP liquidity programme ahead of its listing plans. Employees across levels and functions will have the option to receive liquidity of up to $65 million for their ESOPs, the company said in a release.

This is the fifth ESOP allocation from Swiggy since 2018, and the third consecutive event after July 2022 and 2023. So far, the company has cumulatively enabled over Rs 1,000 crore of ESOPs liquidity over the five events, benefitting over 3,200 employees. 

“Rewarding employees by unlocking wealth-creation opportunities as Swiggy grows has always been a key priority for us,” said Girish Menon, Head of HR at Swiggy.  

“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. As we approach the milestone of a decade of consumer love for Swiggy, the latest ESOP event is an acknowledgement of our employees' contributions, and our commitment to sharing Swiggy’s success and growth with them,” Menon added. 

Food and grocery delivery major Swiggy has reportedly filed draft documents for an initial public offering (IPO) with SEBI. According to reports, the firm has made a confidential filing, implying DRHPs under this category need not be made public. 

In April this year, Swiggy received approval from shareholders for a $1.2-billion initial public offering (IPO). The Bengaluru-based company plans to raise up to Rs 3,750 crore (around $450 million) through a fresh issue and up to Rs 6,664 crore (around $800 million) as an offer-for-sale (OFS) component, according to reports. The startup is looking to shore up about Rs 750 crore from anchor investors in a pre-IPO round. 

Swiggy’s IPO is part of a set of new-age startups which are lining up to go public this year including the likes of omnichannel retailer Firstcry, Ola Electric, and Awfis, among others. 

Swiggy’s competitor Zomato reportedly approved ESOP grants of 40 million stocks under its 2014 and 2021 plans. The grant covers Rs 892.19 crore worth of Zomato stocks.