Swiggy Expands ESOP Pool with ₹150 Crore Fresh Grant to Retain Talent

Food and grocery delivery giant Swiggy has once again expanded its Employee Stock Option Plan (ESOP), granting approximately 1.28 crore new shares under its 2024 ESOP scheme. Valued at an estimated ₹443 crore (₹52 million USD) based on current share prices, this latest allotment follows two earlier grants this year and one in late 2024.

🎯 A Strategic Move for Talent Retention

By allotting these fresh ESOPs at a nominal face value of ₹1, Swiggy continues its commitment to its workforce. The plan is part of its overall strategy to foster loyalty, encourage ownership, and align employee incentives with long-term performance, especially during its upcoming IPO plans.

This is Swiggy’s third ESOP issuance in the last six months, following earlier grants in January (2.61 crore shares) and February (0.86 crore shares) of 2025. In November 2024, the company initiated an ESOP liquidity event worth ₹9,000 crore, benefiting hundreds of employees, with over 500 gaining crorepati status.

📊 Financial Context & Scale

Swiggy’s latest move aligns with ongoing financial milestones and its aggressive expansion. In Q3 FY25, the company recorded a 31% jump in operating revenue (₹3,993 crore) despite elevated investment in its quick-commerce arm, Instamart. Revenue growth has continued, with ₹4,410 crore in Q4, though losses also widened to ₹962 crore EBITDA loss and ₹1,081 crore net loss.

At current market prices (₹343–₹345/share), the 1.28 crore shares translate into ~₹443 crore in value for employees, underscoring significant wealth creation potential.

👥 Boosting Employee Morale and Loyalty

Swiggy’s HR strategy leans heavily on ESOPs:

• Fifth major ESOP event since 2018, and the third liquidity round since 2022
• ESOPs have created wealth for over 3,200 employees, including crorepatis earning ₹1 crore+.
• Latest grant broadened the stock ownership pool, which now covers employees across levels, not just senior leadership.

Swiggy CEO Sriharsha Majety and HR leader Girish Menon emphasise the company’s view that “employees owning shares creates alignment of incentives and a focus on collaborative excellence”

🏆 Market Credibility & IPO Readiness

The new ESOP allotment reinforces Swiggy’s readiness for an upcoming IPO. Earlier this year, the company received shareholder approval for a ₹3,750 crore primary issue and ₹6,664 crore offer-for-sale, supported by a possible green shoe option and pre-IPO placements
Fortune India.

By enriching its ESOP pool and engaging employees in its equity story early, Swiggy is preparing its workforce to act as brand ambassadors and advocates during the IPO process.

📈 Industry Trends in ESOP Usage

Swiggy’s initiatives mirror a broader startup trend:

A 2024 report from Qapita shows ESOP pools increasing from 9% to 12.6% of equity in three years, highlighting ESOPs as a retention and recruitment tool for high-growth firms.

Swiggy’s program faced resistance from newer institutional investors, with ~66% voting against the 2024 plan. However, it passed because non-institutional shareholders held the majority.
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🧭 What Lies Ahead

Swiggy plans to:

• Continue ESOP awards regularly to maintain motivation and alignment.
• Host liquidity events to allow employees to realise gains, as seen previously.
• Integrate fitness, finance, food, quick commerce, and delivery teams into its equity vision.
• Position ESOPs as part of its IPO narrative, showcasing investor support and a mature culture.

✅ Final Take

Swiggy’s fresh ESOP allocation reflects its long-term commitment to employee satisfaction, retention, and wealth creation. By expanding the ESOP pool just ahead of its anticipated IPO, the company demonstrates strong governance and proactive talent management. With substantial revenue growth and rising losses, Swiggy is offering employees a direct stake in its future success—an essential strategy for emerging tech unicorns.