Swiggy’s upcoming IPO, scheduled for November 13, is set to create significant wealth for its employees, with around 500 of them expected to earn ₹1 crore each through Employee Stock Option (ESOP) payouts. In total, approximately 5,000 employees who have been with the company for several years and played a role in its growth will receive a staggering ₹9,000 crore in ESOP wealth. This marks one of the largest ESOP distributions in India’s startup sector.
This move follows in the footsteps of Flipkart, which executed a similar wealth creation strategy, paying out $1.4-1.5 billion (₹11,600-12,500 crore) to its current and former employees, including a significant ₹5,800 crore ($700 million) distribution to 17,000 employees in July 2023. Flipkart had also completed multiple share buybacks over the years, totaling around ₹12,000 crore. Swiggy’s ESOP payout is among the largest in the Indian startup ecosystem, reflecting its rapid growth and the value it’s creating for its employees.
In comparison, Swiggy’s competitor Zomato, which was listed in 2021, also rewarded its employees with an ESOP pool worth ₹7,000 crore. However, Swiggy’s distribution is expected to surpass even this, underscoring the scale of wealth generation in the company ahead of its IPO. Additionally, senior leaders like co-founders and top executives at Swiggy, including Sriharsha Majety, Nandan Reddy, Phani Kishan, and others, received substantial ESOP payouts, with some individuals receiving up to $200 million (₹1,600 crore) ahead of the public listing.
Disclaimer: The information provided is for informational purposes only and does not constitute financial advice. Please conduct your own research or consult a professional before making any investment decisions.
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