Foodtech platform Swiggy has announced two distinct liquidity events to be held over the course of the next two years for all its employees holding Employee Stock Ownership Plan (ESOP). Through this event, all employees holding ESOP will be able to liquidate their stake in their company.
Set to be held in July 2022 and again in July 2023, the two events are expected to be worth around $35-40 million at the company’s current valuation of $5.5 billion. Before this, Swiggy had announced buybacks of employee shares in June 2018 and November 2020. The buyback in November only saw around 40 per cent of the company’s stock option holders as eligible participants, whereas the upcoming two events will be open to all employees.
This move comes in light of Swiggy’s dedication to compensating its working employees as the company recovers from the setbacks it faced due to COVID-19, and democratise wealth creation for Swiggy’s staff. Girish Menon, Head, Human Resources at Swiggy stated that “Swiggy has built a business that has democratized food delivery and convenience.” He said that as the company grows, it wants the team to grow with it and “enjoy the fruits of their hard work and valuable contributions.”
“More importantly, by giving them visibility on the ESOP liquidity, Swiggsters hold the option and flexibility to plan their cash flow and investments,” he further added in the statement.
A company spokesperson has also disclosed that the employees will benefit from any potential changes that might occur in the value of the company, stating that the upcoming liquidity events will be based upon the company’s valuation around the time of the event.
This decision comes as a relief to many as news reports have stated that Swiggy is in talks to further increase its valuation to around $10 billion in the upcoming months by holding another funding round to raise more than $600 million. Prior to this, Swiggy had managed to raise $1.25 billion at its last round of funding which was announced in July 2021.