Swiggy rolls out 2-year liquidity programme
NEW DELHI: Food ordering and delivery platform Swiggy on Wednesday said all its employees holding employee stock ownership plans (Esops) will be eligible to participate in the two liquidity events over the next two years.
On the back of company’s food delivery business surpassing pre-Covid levels, non-food businesses like Instamart and Supr Daily witnessing robust growth, and the latest fundraise of $1.25 billion, the company has decided to institute a programme to enable consistent wealth creation for employees through two distinct liquidity events in the next two years, Swiggy said in a statement.
“This is an industry-first initiative whereby we are democratising wealth creation by enabling all our Esop holding employees to participate in our committed liquidity events in 2022 and 2023. More importantly, by giving them visibility on the ESOP liquidity, Swiggsters hold the option and flexibility to plan their cash flow and investments,” Swiggy, head of HR, Girish Menon, said.
More importantly, by giving them visibility on the ESOP liquidity, the employees hold the option and flexibility to plan their cash flow and invest ments, he added.
These will be the third (in July 2022) and fourth (in July 2023) such liquidity events by the company. The first was in June 2018 and the second was in November 2020, the statement said.
These will be the third (July 2022) and fourth (July 2023) such liquidity events held by Swiggy. The first one was held in June 2018 and the second one in November 2020.
On November 9, 2020, Swiggy commissioned its second Esop liquidity programme via secondary sale. The worth of that exercise was estimated to be in the range of $7-9 million.
While the entire exercise will happen at a current valua tion of $5.5 billion, employees will benefit from any potential value increase at the time of these liquidity events over the next two years. As reported earlier, Swiggy is in talks with investors to raise $500-$600 million at a valuation of over $10 billion, giving it the firepower to compete with Zomato, which was listed on the Indian markets recently. While Zomato has been heavily focussed on the food delivery business, Swiggy has also been expanding its instant grocery service, Instamart.
While startups such as Razorpay, Zerodha, Cars24, Urban Company, Whatfix have announced ESOP buybacks recently, Unacademy unveiled stock options for educators.