Swiggy announces $65 million ESOP buyback ahead of IPO

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IPO-bound food and delivery major Swiggy has announced its plan to buy back stocks worth up to $65 million (₹R543.5 crore) granted under its Employee Stock Ownership Plan (ESOP).

Swiggy’s co-founders, Sriharsha Majety and Nandan Reddy, along with other employees of the food delivery company will sell some shares in the company’s upcoming employee stock ownership plan (ESOP) liquidity event programme.

The shares, sold by employees across levels, will be mopped up by other investors who want to buy shares in Swiggy.

So far, the company has cumulatively enabled over ₹1,000 crore of Esops liquidity over the five events, benefiting more than 3,200 employees.

Swiggy’s first ESOP was hed in 2018 at $4 million and worth $9 million in 2020. The third subsequent ESOP buyback was held in 2023 for $50 million.

“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,” he added.

Swiggy has filed draft documents for an initial public offering (IPO) with SEBI. The firm has received a go-ahead from its shareholders for its initial public offering (IPO).

The company is looking to raise up $450 million in fresh capital, and has an offer-for-sale (OFS) component of up to $800 million, according to filings.