Liquidity for Swiggy employees; here are the criteria
Swiggy employees will get the option to receive liquidity of around $50 million against their ESOPs. It is worth mentioning that the firm did not shed light on each stock’s breakup and price.
Since 2018, the food delivery app has repurchased ESOPs four times, with the extent increasing yearly.
Swiggy employees and their ESOPs:
On Monday, the food delivery platform Swiggy reported that the firm’s employees could get liquidity of up to $50 million against their ESOPs. This event will even see eligible workers from Dineout participate, even though Swiggy acquired the business just last year.
Girish Menon, Head of HR at Swiggy, stated, “Two years ago, Swiggy announced a one-of-its-kind ESOP program to enable consistent wealth creation for employees through two distinct liquidity events in 2022 and 2023.”
“Our team is Swiggy’s most valuable asset, and we are happy that macroeconomic conditions notwithstanding, we’re able to keep our commitment to sharing Swiggy’s success and growth through these wealth creation opportunities,” the Head of HR continued.
It is worth mentioning that the firm did not shed light on each share’s breakup and price.
Since 2018, the food delivery app has repurchased ESOPs four times, with the extent increasing yearly. The firm bought back shares valued at $4 million in 2018 and then spent $9 million in 2020. After a break of almost two years, Swiggy bought back shares valued at $23 million in 2022, and now it will be paying out $50 million.
It is worth citing that numerous investors have marked down the firm’s valuation. The US-based asset management company (AMC) Baron Capital decreased the firm’s valuation by 34 per cent. Baron Capital calculated the appropriate value of its stake in Swiggy at $50.9 million, per SEC filings.
Baron Capital holds around a 0.7 per cent stake in Swiggy, and its fair value estimate means a $7.3 billion valuation for the food tech unicorn.
