- Move not only rewards its workforce but also positions the company for long-term success in the highly competitive food delivery landscape.
- Move comes as the startup is aiming to raise about $450m in fresh capital and another $800m through an offer-for-sale component.
As Swiggy, the prominent food delivery giant, navigates a challenging market landscape and prepares for its highly anticipated public listing, the company has unveiled its fifth employee stock options (ESOPs) liquidity programme, valued at a substantial $65 million.
The strategic move aims to retain top talent and foster unwavering loyalty within its workforce, underscoring Swiggy’s commitment to rewarding its employees as it continues to grow and expand.
The secondary transaction, which is being executed at a discounted valuation of over $9 billion, is expected to attract additional investors as more employees opt in, according to a person familiar with the matter.
The ESOP liquidity programme marks Swiggy’s fifth such initiative since 2018, cumulatively enabling over Rs1,000 crore of liquidity across these events and benefiting more than 3,200 employees.
“Rewarding employees by unlocking wealth-creation opportunities as Swiggy grows has always been a key priority for us,” Girish Menon, head of human resources at the company, said.
Swiggy remains resilient
By unlocking these wealth-creation opportunities, the company is not only recognising the contributions of its employees but also fostering a sense of loyalty and commitment as it navigates the challenges of a slowing market and intensifying competition.
The move also comes as Swiggy prepares for its highly anticipated initial public offering (IPO), which is slated for the coming months.
The company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), aiming to raise about $450 million in fresh capital and another $800 million through an offer-for-sale component, as per the filing.
Despite the challenges it has faced, including a slowing market, price-conscious customers, and senior-level management exits, Swiggy has remained resilient.
The company’s operating revenues increased by approximately 45 per cent to Rs8,264 crore in FY23, although losses widened by 15 per cent to Rs4,179 crore from the previous year.