Swiggy begins second tranche of its ESOP liquidity program totaling $50 million: Report

Online food delivery startup Swiggy will be buying back shares worth $50 million from 2,000 employees which were earlier issued to them as a part of its employee stock option plan (ESOP), the company said on Monday. 

According to a report published by MoneyControl, after this announcement, Swiggy has entered the list of new-age companies that have given rewards to their employees this year which also includes Flipkart. 

In 2021, Swiggy announced that the company will reward its employees for their performance in the coming two years, that is, 2022 and 2023. It is a part of the online grocery and food delivery company's ESOP liquidation exercise. 

Last year, the company initiated its committed ESOP liquidity Program aggregating $23 million. It also launched a new program that will bring in more opportunities to create wealth for employees.

Swiggy, which is the country's leading on-demand convenience platform, also reached its first milestone as a part of its two-year ESOP Liquidity Program.

In addition to its commitment to its two-year ESOP liquidity program, the company had also rolled out a new program, Build Your Own Dollar (BYOD), in 2022. Under this, Swiggy employees across the company can choose to invest in Swiggy ESOPs.

Earlier, ESOPs were offered to employees above a certain grade and/ or based on performance. The BYOD program is open to all permanent employees of Swiggy. The move employees holding ESOPs to create wealth alongside the growth and success of the brand. 

In 2018, the company bought back ESOPs worth $4 million from its employees around four times with the increasing size each year. In 2020, Swiggy spent $9 million, and then $23 million in 2022.