- Food aggregator major Swiggy announced its secondary liquidity program for its employees who were part of the employee stock ownership plan (ESOP) of the company.
- The total quantum of the program is between $7-9 million and it will be completed by April 2021.
Bangalore-based food aggregator Swiggy, on Monday, introduced its secondary ESOP liquidity program to reward its employees who were part of the ESOP (Employee Stock Ownership Plan) of the company.
Through this program, employees will be allowed to sell their holding shares to investors in the company.
This is the second such liquidity program launched by Swiggy, which will see participation from the family offices of leading industrial houses and individual investors to participate in the funding round of the company.
In June 2018, Swiggy had first launched a similar program for its employees.
According to the reports, The program worth between $7-9 million, and it will be completed by April 2021. However, the company has not yet disclosed the amount of the transaction.
“This program will see participation from the family offices of leading industrial houses in India and a few individuals who are stalwarts in their respective fields. Their interest to join the Swiggy investor community is a testament to their trust in the brand, our vision, and growth potential,” said Girish Menon (Vice President of Swiggy).
“Over 40% of our employees with ESOP benefits – current and those we had to, unfortunately, part ways with earlier this year- will be eligible to exercise their stocks. Some of them will be able to liquidate their ESOPs at as much as 3x premium of the allotted price,” he added.
Earlier this year, food aggregator unicorn Zomato had also introduced the ESOP liquidity program for its employees, which saw a total buyback amount of $30 million during the program transaction.
Other leading Indian startup-like Paytm, OYO, Urban Company, and Sharechat had also introduced ESOP liquidity programs for its employees.
An Employee Stock Ownership Plan (ESOP) is an employee benefit program that allows employees to own shares/ownership in that company, typically through a stock option plan.
the story was first reported by PTI