There is some exciting news for Swiggy employees. The food delivery service company, apparently has initiated a share buyback program for around 2,000 employees. This marks the second employee stock option plan (ESOP) liquidation exercise, following the first one conducted in July 2022.
During the initial ESOP liquidation phase, approximately 900 employees benefitted, with the total shares bought back valued at around Rs 150-170 crore.
The second phase of ESOP liquidation is expected to be even more substantial, ranging between Rs 200-225 crore.
Even in 2018 and 2020, Swiggy had bought back shares from employees. In 2018, the worth of shares was roughly around Rs 30 crore and Rs 67 crore in 2020.
Swiggy’s employee strength is around 5000 and it includes employees of Dineout who moved following an acquisition by Swiggy. So close to half of the employees will benefit from this ESOP liquidation.
The payment will be done along with the July salary, which is to be paid in August. Swiggy employees, who have vested ESOPs on or before April 1, 2023 will be eligible for payout. Similarly, for employees who migrated from Dineout, the date is July1, 2023.
In May 2023, US-based asset management firm, Baron Capital valued Swiggy at $6.38 billion which is approximately, Rs 47,465 crore. Baron Capital had participated in Swiggy’s January 2022 funding round, when Swiggy raised $700 million at a valuation of $10.7 billion.