Swiggy, a prominent food delivery and quick commerce decacorn, has unveiled an ESOPs liquidity program worth $65 million, marking its fifth such event since 2018. Employees across various levels and functions can now access liquidity for their ESOPs in the secondary market.
This announcement follows two consecutive liquidity events in July 2022 and 2023. According to a press statement from Swiggy, the company has facilitated over Rs 1,000 crore in ESOP liquidity through these five events, benefiting 3,200 employees.
The names of investors participating in the secondary sale have not been disclosed. Entrackr reported in April that Swiggy offered a 20% discount in the secondary sale.
The secondary sale of ESOPs coincides with Swiggy’s preparation for its stock exchange debut. Swiggy has confidentially filed for an initial public offering (IPO) valued at Rs 10,400 crore (approximately $1.25 billion) and is expected to go public within weeks.
Shareholders have approved Swiggy’s IPO plan, which includes Rs 3,750 crore ($450 million) for fresh shares and Rs 6,664 crore ($800 million) for an offer for sale (OFS). Investors such as Prosus, SoftBank, DST Global, Accel Partners, and Elevation Capital are likely to sell their holdings in the OFS.
Girish Menon, Head of HR at Swiggy, commented, “As we approach a decade of consumer love for Swiggy, the latest ESOP event acknowledges our employees’ contributions.”
While Swiggy’s ESOPs have been sold to investors in the secondary market, other companies like Urban Company, MyGate, Classplus, Meesho, The Sleep Company, XYXX, and Pocket FM have repurchased ESOPs from their employees in 2024. According to startup data intelligence platform TheKredible, Indian startups conducted nearly $802 million in ESOP buybacks in 2023, compared to $440 million in 2021 and $200 million in 2022.