Swiggy ESOPs 2024: Bengaluru-based food and grocery delivery giant Swiggy has handed out stock options worth $271 million to its senior leadership ahead of its anticipated initial public offering (IPO). According to Swiggy's pre-listing prospectus, the Employee Stock Ownership Plan (ESOP) was launched in April 2024, with the bulk of the rewards going to the company’s founders and top executives, as per its updated Draft Red Herring Prospectus (DRHP), filed on September 27, 2024.
Swiggy founder and CEO Sriharsha Majety has been awarded the lion's share of the ESOPs, receiving nearly $200 million worth of stock options. This move is expected to boost Majety's current 6.23 per cent stake in the company by an additional 2.2 -2.5 per cent. The ESOPs, along with his sale of shares worth $7.5 million as part of the Offer for Sale (OFS) in the IPO, further solidify his position ahead of the public listing.
Majety and fellow co-founder Nandan Reddy had already sold a portion of their shares in Swiggy through secondary transactions between July and September 2024. Majety sold shares worth $23 million, while Reddy sold $12 million.
Apart from the founders, several other Swiggy executives received significant stock options as part of the ESOP plan.
Ashwath Swaminathan, Swiggy’s former chief growth and marketing officer who stepped down in September, received stock options worth USD 5.7 million before his departure. He will only get vested options since he's not with the company
Swiggy confidentially filed for a $1.25 billion IPO with the Securities and Exchange Board of India (SEBI) earlier this year. The fresh issue component, originally set at $450 million, may be increased to $600 million. Alongside the company’s founders and executives, several early investors, including Prosus, Norwest Venture Partners, Elevation Capital, Accel, Coatue, and Alpha Wave Global, are expected to sell shares as part of the offering.
