For Swiggy employees, there are some exciting developments. It appears that the company that provides food delivery services has started a share buyback program for about 2,000 employees. This is the second liquidation exercise under an employee stock option plan (ESOP), the first having taken place in July 2022.
Around 900 employees benefited from the initial ESOP liquidation phase, and the total value of the shares that were bought back was between Rs 150 and Rs 170 crore.
It is anticipated that the second phase of the ESOP liquidation will be even more substantial, costing between Rs 200 and 225 crore.
Even in the years 2018 and 2020, Swiggy had repurchased shares from its staff. The value of shares was approximately Rs 30 crore in 2018 and Rs 67 crore in 2020.
Around 5000 people work for Swiggy, including Dineout employees who transferred over after Swiggy acquired them. This ESOP liquidation will benefit almost half of the workforce.
Swiggy was valued by the US-based asset management company Baron Capital in May 2023 at $6.38 billion, or roughly Rs 47,465 crore. Baron Capital had taken part in Swiggy’s funding round in January 2022, when Swiggy raised $700 million at a $10.7 billion valuation.