Foodtech giant Swiggy has initiated the second tranche of its committed employee stock option plan (ESOP) liquidity programme, amounting to $50 Mn, as stated in a blog post on Monday (July 24). The liquidity programme offers eligible Swiggy employees the opportunity to receive liquidity against their ESOPs. Over 2,000 employees, including those from Dineout, acquired by Swiggy last year, are said to be eligible for this programme.
Consistent Wealth Creation for Employees
Girish Menon, head of HR at Swiggy, initially announced the ESOP liquidity programme in 2021. The company completed two tranches in 2022 and 2023. The first tranche, initiated in June 2022 and worth $23 Mn, benefited approximately 900 employees. Swiggy views its team as its most valuable asset and is committed to sharing its success and growth through these wealth creation opportunities.
Swiggy- Growth and Diversification
In addition to the ESOP liquidity programme, Swiggy has been achieving significant milestones. As of March 2023, it turned EBITDA positive in its food delivery business. Furthermore, Swiggy expanded its reach by integrating Dineout with its main product. Additionally, the foodtech giant entered India’s food and grocery retail market through the acquisition of FMCG retail distribution company LYNK Logistics. LYNK will continue to operate independently, enabling FMCG brands to enhance their retail presence through its extensive network of 100,000+ retail stores across eight Indian cities.
Swiggy Moves into India’s Food and Grocery Retail Market
The acquisition of LYNK Logistics marks Swiggy’s entry into India’s food and grocery retail market, which is one of the world’s largest and fastest-growing markets, estimated to be over $570 Bn in size and expected to grow at an 8% year-on-year rate, according to the company’s announcement.
ESOP Initiatives Amongst Prominent Startups
Swiggy’s ESOP liquidity programme aligns with other big-name startups that have prioritized wealth creation for their employees. Flipkart, for example, is paying out $700 Mn to thousands of its employees due to the separation of fintech decacorn PhonePe from Flipkart, leading to a significant increase in the value of ESOPs. Similarly, fintech giant Paytm has recently issued 1.7 Mn additional ESOPs under its ESOP programme announced in 2019. These initiatives demonstrate a growing trend of startups recognizing the importance of enabling wealth creation for their workforce.
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