Swiggy begins second tranche of its ESOP liquidity program totaling $50 million: Report

Swiggy will buy back shares worth $50 million from 2,000 employees as part of its employee stock option plan (ESOP).

Swiggy, the prominent online food delivery startup, has announced a buyback of shares worth $50 million from 2,000 of its employees who were previously issued these shares as part of the company’s employee stock option plan (ESOP). The move reflects Swiggy’s commitment to rewarding its employees and sharing the success of the company with them.

This buyback initiative places Swiggy among the new-age companies, such as Flipkart, that have chosen to acknowledge their employees’ contributions with incentives this year. In 2021, Swiggy had already outlined plans to reward its workforce based on their performance in 2022 and 2023 as part of the ESOP liquidation exercise.

Last year, the company launched its dedicated ESOP liquidity program amounting to $23 million. In continuation of this effort to provide employees with opportunities to create wealth, Swiggy recently achieved a milestone in its two-year ESOP Liquidity Program.

Additionally, the company introduced the “Build Your Own Dollar” (BYOD) program in 2022. The BYOD program allows Swiggy’s permanent employees across the organization to invest in Swiggy ESOPs, democratizing access to the stock options beyond specific grades or performance levels. This initiative enables employees to participate in the company’s growth and success while creating their own financial opportunities.

Swiggy has demonstrated a consistent commitment to its employees by repurchasing ESOPs in previous years as well. In 2018, it bought back shares worth $4 million, and the amount increased progressively in subsequent years, with $9 million spent in 2020 and $23 million in 2022.

By rewarding its employees through the ESOP buyback and creating accessible investment options, Swiggy aims to further enhance employee satisfaction, motivation, and loyalty. As the company continues to lead India’s on-demand convenience platform, its efforts to share its success with its workforce are likely to strengthen the company’s position in the competitive food technology market.

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