Online food delivery platform Swiggy said it will buy back shares worth $50 million from 2,000 employees. The shares were issued to them as part of the company’s employee stock option plan (ESOP). The development comes at a time when startups across the segments are cutting costs to save cash amid funding winter.
With this, Swiggy has joined a growing list of new-age companies that have rewarded their employees this year. According to a Moneycontrol report, 19,000 Flipkart employees were earlier this month also paid a whopping sum of $700 million following the company’s split with PhonePe.
The ESOP liquidation exercise is part of Swiggy’s announcement in 2021 where it said employees would be rewarded for their performance in 2022 and 2023. Since 2018, Swiggy has bought back ESOPs four times with the size increasing each year.
The company bought back shares worth $4 million in 2018, then spent $9 million in 2020. After a break of about two years, Swiggy bought back shares worth $23 million in 2022 and it will now be paying out $50 million to 2,000 employees which represent less than half of its overall strength of just over 5,000.
Our team is Swiggy’s most valuable asset and we are happy that macroeconomic conditions notwithstanding, we’re able to keep our commitment of sharing Swiggy’s success and growth through these wealth creation opportunities,” said Girish Menon, head (HR) at Swiggy.
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