Swiggy is planning on rolling out a new Employee Stock Ownership Plan (ESOP) liquidity program as a reward for its employees.
In June 2018, Swiggy had come up with a liquidity program, making this the second initiative by the food-tech major.
Read on to learn more about the program…
What Does Swiggy’s ESOP Liquidity Program Offer?
The family offices of leading industrial houses in India and a few individuals will participate in the ESOP liquidity program.
Girish Menon, vice president of HR at Swiggy said, “In a short span of six years, Swiggy has built a business that has completely transformed food delivery and convenience while adding tremendous value to stakeholders be it our investors, restaurant partners or delivery partners. As the food delivery business makes a steady recovery and the future continues to look promising, we want to reward our team that has worked relentlessly over the last many months with a meaningful wealth creation opportunity through an ESOP liquidity program. Over 40% of our employees with ESOP benefits – current and those we had to unfortunately part ways with earlier this year- will be eligible to exercise their stocks. Some of them will be able to liquidate their ESOPs at as much as 3x premium of the allotted price.
This program will see participation from the family offices of leading industrial houses in India and a few individuals who are stalwarts in their respective fields. Their interest to join the Swiggy investor community is a testament to their trust in the brand, our vision and growth potential.”
Zomato Might Launch Another ESOP program Worth Around Rs 6 crore!
This development comes at a time when companies are struggling to reach pre-COVID figures.
Recently, the Bengaluru-based firm said in terms of the order value of its food delivery business it has recovered to around 80-85% of pre-Covid-19 levels. From March, the start of lockdown, till the first week of October, Swiggy said it had delivered over 10 crore orders.
Zerodha, Urban Company, Unacademy, and even Zomato, Swiggy’s competitor have launched ESOP buyback or liquidation program to reward existing employees and/or former employees.
Zomato observed an ESOP buyback worth $30 million in 2020 by delivering over 9.2 crore orders from the start of the lockdown till October 12. Zomato is planning on rolling out another such program amounting to around $50-60 million to give its current employees an exit before its public listing.