Swiggy’s upcoming IPO, set to launch on November 13, is expected to bring huge benefits to its employees. The food delivery giant is on track to create significant wealth for its team, with estimates suggesting that around 500 employees could become crorepatis, or millionaires, thanks to a massive payout through employee stock options (ESOPs). The total amount of money being unlocked for these employees is about ₹9,000 crore, marking a major milestone in India’s startup ecosystem.
This IPO is anticipated to be one of the largest wealth-generating events for employees in the Indian tech industry. With an estimated valuation of ₹11,300 crore, it is set to be the biggest IPO in the tech sector since Paytm went public in 2019. The public offering has already seen substantial interest from investors, with institutional investors playing a major role in the subscription. Retail investors and employees have also shown strong demand for the shares, indicating high confidence in Swiggy’s future.
For Swiggy employees, this IPO offers an opportunity to benefit from the company’s growth over the years. Swiggy has issued three major ESOP plans, the latest being in 2024. These stock options have created a pool of almost 230 million shares, and about 9 million of these options have already been converted into actual shares. The employees who hold these options will now be able to sell their shares just one month after the IPO, thanks to a special exemption granted by the Securities and Exchange Board of India (SEBI). This means that Swiggy employees will have quicker access to their wealth compared to other companies with longer lock-in periods for their shares.
The Swiggy IPO is also drawing comparisons to Flipkart’s ESOP success. Flipkart, one of India’s leading e-commerce platforms, has made employee buybacks worth $1.5 billion over the years. In 2023, Flipkart paid $700 million to its employees when it separated from PhonePe, one of its subsidiaries. Swiggy’s IPO is expected to be a similar success, setting a new benchmark for wealth creation among Indian startups.
The Swiggy IPO is not just a win for employees at the lower levels of the company, but also for its top executives. Swiggy’s founders, Sriharsha Majety, Nandan Reddy, and Phani Kishan, as well as other top leaders, hold significant ESOPs, which could be worth over ₹2,600 crore after the IPO. This makes the event not only an important moment for employees, but also for the leadership that has driven Swiggy to its current success.
Overall, Swiggy’s IPO represents an exciting time for its employees, who stand to gain considerable financial rewards. This move highlights the company’s commitment to sharing its growth with its team, and it’s expected to make a lasting impact on the Indian startup scene.
