News · Commerce & Consumer Brands
Swiggy announces $65 million ESOP liquidity program
By Startup Enthusiast ·
- Date
- Company
- Swiggy
- What it does
- Food and grocery delivery platform
- Kind
- News
- Amount
- $65 million
What they do
Swiggy operates a food delivery marketplace and quick-commerce service Instamart
What happened
It announced a $65 million ESOP liquidity program, its fifth since 2018, allowing employees to sell vested stock options
Why it matters
The program comes as Swiggy prepares for its IPO, having filed papers for a Rs 10,400 crore offering
The details
- Swiggy announced a $65 million ESOP (employee stock option plan) liquidity program.
- This is Swiggy's fifth ESOP liquidity event since 2018.
- Employees across levels and functions can receive liquidity for their ESOPs in a secondary sale (existing shareholders buy employee shares).
- Swiggy did not disclose which investors participated in the secondary sale.
- Entrackr reported in April that Swiggy offered a 20% discount in the secondary sale.
- The ESOP secondary sale occurs as Swiggy prepares for its stock exchange debut.
- Swiggy confidentially filed IPO papers for Rs 10,400 crore (approx $1.25 billion).
- Shareholders approved an IPO comprising Rs 3,750 crore ($450 million) fresh shares and Rs 6,664 crore ($800 million) offer for sale.
The bigger picture
- Swiggy claims over Rs 1,000 crore of ESOP liquidity enabled across five events, benefiting 3,200 employees.
- ESOP liquidity events also occurred in July 2022 and July 2023, making this the third consecutive yearly event.
- Backers Prosus, SoftBank, DST Global, Accel Partners, Elevation Capital are likely to sell holdings in the offer for sale.
- Urban Company, MyGate, Classplus, Meesho, The Sleep Company, XYXX, Pocket FM also bought back ESOPs from employees in 2024.
- Total ESOP buyback by Indian startups was nearly $802 million in 2023, per TheKredible.
About the business
- Swiggy operates a food delivery marketplace and quick-commerce service Instamart.
- Swiggy Instamart operates in more than 25 cities.
- It delivers groceries and essentials across over 20 categories in 10 minutes.
- Swiggy Instamart competes with Zepto and Blinkit.
- Per an ET report, Amazon approached Instamart for a potential acquisition.
What happens next
- Swiggy is likely to go public in a few weeks from July 2024.
The deal
- Type
- ESOP liquidity program
Founders
- Sriharsha Majety, Founder
- Phani Kishan Addepalli, Founder
- Nandan Reddy, Founder
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- Swiggy appoints new leaders for Instamart and food business18 August 2026 · People
- Swiggy shareholders approve foreign ownership cap18 August 2026 · Policy
- Swiggy agrees to refund promotional fees to restaurants7 August 2026 · Policy
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