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Swiggy IPO to Mint 500 Crorepatis, Employees Set to Earn Rs 9,000 Crore

• ByStartupStory     |    November 14, 2024

Swiggy, one of India’s largest food delivery platforms, is set to create significant wealth for its employees with its upcoming IPO on November 13. Approximately 500 employees are expected to earn Rs 1 crore each, as the company’s stock market debut promises to distribute a staggering Rs 9,000 crore among its 5,000 staff members who have been integral to the company’s growth.

The employee stock option (ESOP) payout is one of the largest of its kind in India’s startup ecosystem, marking a milestone for the company’s long-standing employees. According to sources familiar with the development, this ESOP payout will ensure that these employees are rewarded for their years of hard work in scaling the company.

This move by Swiggy follows in the footsteps of Flipkart, which carried out a similar ESOP payout exercise earlier. Flipkart’s wealth creation drive, one of the largest in India’s startup scene, paid $1.4-1.5 billion (Rs 11,600-12,500 crore) to its current and former employees. This payout was a part of Flipkart’s five share buybacks worth $1.4-1.5 billion over the years, with the latest one in July 2023, where the company paid Rs 5,800 crore ($700 million) to 17,000 employees.

While many startups in India have offered ESOPs, Swiggy’s move stands out due to the scale at which it is rewarding its employees, making it one of the top ESOP payouts in the country.

In addition to the 500 employees set to become crorepatis, the Swiggy IPO also includes a broader group of 5,000 staffers who will benefit from the ESOP payout, reflecting the company’s commitment to rewarding those who have played a key role in its journey.

Notable Employee Rewards

Ahead of the IPO, several top Swiggy executives have received substantial rewards. Last month, it was reported that Swiggy co-founders Sriharsha Majety, Nandan Reddy, and Phani Kishan, along with food marketplace CEO Rohit Kapoor, Swiggy Instamart head Amitesh Jha, CFO Rahul Bothra, HR head Girish Menon, and CTO Madhusudhan Rao, received $200 million (Rs 1,600 crore) in ESOPs as part of the company’s efforts to incentivize key employees ahead of its public listing.

Comparison to Zomato’s IPO

Swiggy’s IPO follows Zomato’s public listing in 2021, where the food delivery company also created significant wealth for its employees. Zomato had an ESOP pool worth around Rs 7,000 crore during its IPO and has continued to reward employees through various ESOP programs in the following years.

Swiggy’s IPO and ESOP initiative demonstrate the growing trend among Indian startups to not only reward their employees but also create significant wealth as they scale and go public. With the upcoming IPO, Swiggy is following the example of Flipkart and Zomato, solidifying its place as one of the biggest players in India’s startup ecosystem.

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