Swiggy to buy back $50 million in ESOPs from employees

Photo credit: Swiggy

Swiggy, an India-based food delivery platform, has announced a buyback of shares worth US$50 million from 2,000 staff members as part of its employee stock option plan (ESOP).

This is in line with an announcement it made in 2021 where it said that it would reward employees based on their performance in 2022 and 2023. This is the fourth time since 2018 that Swiggy has conducted an ESOP buyback, with the size increasing each time.

The buyback will also include eligible employees from Dineout, which Swiggy acquired last year, the latter said in a statement.

“Our team is Swiggy’s most valuable asset, and we are happy that, macroeconomic conditions notwithstanding, we’re able to keep our commitment of sharing Swiggy’s success and growth through these wealth creation opportunities,” the company added.

Founded in 2014, the firm connects consumers to over 250,000 restaurant partners. It also runs Instamart, a quick commerce grocery service available in more than 25 cities.

In May, Swiggy said that its food delivery business had turned profitable for the first time. Valued at over US$10 billion, it last raised US$700 million in January 2022.

The company directly competes with Zomato in the food delivery and quick commerce spaces.

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