Swiggy announced $40 Million 2-Year Esop Buyback Program
- ByStartupStory | October 7, 2021
Swiggy, a food tech unicorn, announced an all-new plan for its employees to offer their stock picks worth $3,040 million over two years, based primarily on its current valuation of $5.5 billion dollars.
According to Girish Menon, head of human resources at the Bengaluru-based company, the company has invited all of its ESOP holding company employees to participate in its “dedicated liquidity events,” which will take place in July 2022 and July 2023. It has not specified on what basis withdrawals will take place in the event of excess demand.
Swiggy has already strengthened its capital base by raising $1.25 billion in July this year from SoftBank Imaginative and Precient Fund 2 and Prosus.
The company is in talks with Invesco to raise up to $600 million in recent spherical funding, which could be worth the $10 billion startup. Current buyers, including SoftBank and Prosus, are also expected to participate in the next sphere.
Swiggy transfer underscores a series of similar steps the Indian startups have taken in recent months to reward their workforce amid an influx of cash from domestic and international buyers.
This could be the third and fourth Esop liquidity opportunity for Swiggy, which completed its employee share buybacks in June 2018 and November 2020.
Swiggy’s most recent liquidity opportunity last November was valued at $79 million, with 40% of the company’s Esop holders qualifying for the train on duty.
Meanwhile, the idea of assigning Esops has also shifted from employees to company peers, even non-employee enterprise companions.
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