Swiggy, the popular food delivery platform in India, has announced the allocation of Employee Stock Ownership Plans (ESOPs) worth INR 1,171 crore to its employees.
Swiggy CEO Sriharsha Majety emphasized the importance of ESOPs in retaining top talent and driving the company’s growth.
He stated that the ESOP allocation is a testament to Swiggy’s commitment to its employees and their contributions to the company’s success.
Swiggy ESOP Allocation Details
In a regulatory filing dated January 25, 2025, Swiggy revealed its approval of the allotment of 2,61,93,411 equity shares.
These shares are part of the Swiggy ESOP Plan 2015 and the Swiggy ESOP Plan 2021.
This allocation has increased Swiggy’s paid-up equity share capital from INR 2.23 crore to INR 2.26 crore.
The market value of the ESOP allocation is pegged at INR 1,171 crore, based on Swiggy’s last trading price of INR 448.85 per share.
Swiggy has launched three ESOP plans so far—one each in 2015, 2021, and 2024. These plans have collectively created a pool of almost 230 million shares.
The practice of allocating ESOPs, popularized by IT giants like Infosys, has now become a norm among consumer internet firms.
Typically, these companies grant additional stock options to founders and senior management as incentives ahead of a public listing.
Impact on Employees and Company Culture
The wealth creation opportunity for a broader set of employees can have multiple ripple effects.
Over a dozen new-age companies, including Swiggy, Meesho, Purplle, Urban Company, Whatfix, Pocket FM, Dehaat, and MyGate, have facilitated ESOP buybacks this year.
This move not only rewards employees but also fosters a sense of ownership. Cultivating a strong company culture is crucial for long-term success.
The trend of ESOP allocation is becoming increasingly prevalent among startups and new-age companies.
According to a 2024 survey, 78% of companies now offer ESOPs to their staff, a significant increase from 59% in 2021.
This indicates a growing recognition of the importance of employee ownership and wealth creation. These factors are crucial in fostering a motivated and dedicated workforce.
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