The programme is pegged at $35-40 million at Swiggy’s $5.5 billion valuation f
ollowing its $1.25 billion funding round in July, according to industry sources. All employees with stock options will be eligible to participate. The value of the stock options will increase in tandem with the company’s valuation.
ET reported on September 28 that the company was
finalising a new financing round of about $500-600 million, which is likely to be led by US asset manager Invesco at a valuation of $10 billion.
Girish Menon, head of human resources at Swiggy, said, “As Swiggy grows, we want our team to grow with us and enjoy the fruits of their hard work and valuable contributions. This is an industry-first initiative whereby we are democratising wealth creation by enabling all employees with stock options to participate in liquidity events. More importantly, by giving them visibility on the liquidity programme, [we are giving them] the flexibility to plan their cash flow and investments.”
Swiggy had
conducted its first share buyback in June 2018. Its second, in November 2020, was
commissioned via a secondary sale. The value of that buyback was estimated to be in the range of $7-9 million.
The company said that its food delivery business had surpassed pre-Covid levels and non-food businesses were witnessing robust growth. “Swiggy and its board have decided to institute a one-of-its-kind programme to enable consistent wealth creation for employees through two distinct liquidity events in the next two years,” it said.
