Swiggy Approves Allocation Of 1.28 Crore Equity Shares Under ESOP Scheme

Swiggy Approves Allocation Of 1.28 Crore Equity Shares Under ESOP Scheme. India’s leading food and grocery delivery platform, Swiggy, has announced something big. The company has given 1.28 crore shares to its employees under the Employee Stock Option Plan (ESOP) 2024. This move is part of their plan to reward employees and help them benefit from the company’s success.
What Has Swiggy Done?
Swiggy has allotted 1,28,96,462 equity shares to its eligible employees. These shares were given under its ESOP 2024 scheme, where employees are allowed to buy company shares at a very low price, called the exercise price.
What is the Price of These Shares?
Swiggy is offering the shares at INR 1 per share, which is the face value. The current market price of the shares is about INR 343.75, which means the total value of these shares is INR 443.31 crore (approximately $52 million). So, employees are getting a big benefit through this plan.
How Did Swiggy’s Stock Perform After the Announcement?
On the day Swiggy made this announcement (April 22), the stock price showed some movement. It went up to INR 345.15, but later dropped slightly to INR 341.20. The fluctuation is normal, and may be due to market reactions and other economic factors.
Has Swiggy Done This Before?
Yes, Swiggy has been rewarding employees with shares for some time. Here’s a timeline of past allotments:

January 2025 – Swiggy allotted 2.61 crore shares.

February 2025 – Swiggy allotted 1.71 crore shares and 8.64 lakh shares.

November 2024 – Swiggy unlocked ESOPs worth INR 9,000 crore.

These rewards show how much Swiggy values its team.
How Did Employees Benefit?
In November 2024, Swiggy made 500 employees crorepatis (people who earned more than INR 1 crore) from ESOPs. Among them, 70 employees earned more than INR 8.5 crore each. This shows how much the ESOP scheme can help employees build wealth.
Why Is Swiggy Giving Shares to Employees?
The ESOP scheme helps Swiggy in many ways:

It rewards employees for their hard work.

It encourages them to stay with the company.

It makes employees feel like they own a part of the business.

It helps attract new talent in a competitive market.

Swiggy’s Agreement with the Government
Recently, Swiggy signed an agreement with the Ministry of Labour and Employment. The aim is to list gig job roles (like delivery partners) on the National Career Service (NCS) portal. Together, they want to create 12 lakh jobs in the next 2–3 years. This is a major move to support the gig economy.
Swiggy Launches ‘Pyng’ for Online Services
Swiggy is also expanding into professional services. They launched a new platform called Pyng, which allows users to connect with verified experts such as:

Financial advisors

Astrologers

Health and wellness professionals

Education and travel consultants

Pyng is currently offering offline services only in Bengaluru, but online services are available all over India.
Swiggy’s Financial Health – Is the Company Making Money?
Swiggy’s financial results for the third quarter of FY 2025 show a mixed picture:

Net Loss: INR 799 crore (a 39% increase from last year)

Operating Revenue: INR 3,993 crore (31% increase from last year)

While the company is growing in revenue, it is still making losses. Much of this is due to their heavy investment in quick commerce.
Instamart’s Role in Losses
Swiggy’s quick commerce service Instamart is growing fast, but it’s also expensive to run. The contribution margin (how much profit is made from each order) fell to -4.6%, down from -1.9% three months earlier. This means Swiggy is losing money on each Instamart order, but hopes to improve this in the future.
How Are Orders and Customers Growing?
Swiggy is growing fast in terms of users and orders:

Gross Order Value (GOV): INR 12,165 crore (up 38% year-on-year)

Monthly Transacting Users (MTU): 17.8 million users (up 25.3%)

One-third of the users use more than one service offered by Swiggy.

This shows that Swiggy has a strong and loyal customer base.
Swiggy’s Food Delivery Business
Swiggy’s core business, food delivery, is still doing well:

Revenue: INR 1,636 crore

Quarter-on-quarter growth: 3.7%

Year-on-year growth: 23%

This steady growth shows that Swiggy’s main business is strong and stable.
Conclusion
Swiggy’s decision to allot 1.28 crore shares under ESOP 2024 shows that the company is focused on keeping its employees happy and motivated. While the company is still facing losses, especially in quick commerce, its overall business is growing steadily.
Swiggy’s efforts to expand services, reward employees, and collaborate with the government show that it is preparing for a strong future—possibly even an IPO soon. With a growing user base, new services like Pyng, and plans to support gig workers, Swiggy is building a more diverse and resilient business model.
FAQs
Q1. What is the significance of Swiggy allotting 1.28 crore equity shares under its ESOP 2024 scheme, and what is the approximate market value of these shares?
Ans. Swiggy's allotment of 1.28 crore equity shares under its ESOP 2024 is a significant move reflecting its focus on employee-centric growth and talent retention. With a face value and exercise price of Rs.1 per share, the total market value of the allocated equity is approximately Rs.443.31 crore (USD 52 million), based on the latest valuation metrics. This large-scale allocation serves as a non-cash incentive to reward and retain employees.
Q2. What are the key strategic implications of this large-scale ESOP issue for Swiggy, particularly in terms of talent management and potential future events like an IPO?
Ans. This ESOP issue has several strategic implications for Swiggy. Firstly, it aids in talent retention and motivation in a competitive environment by aligning long-term employee interests with the company's success. Secondly, market analysts suggest it could be a precursor to Swiggy's anticipated IPO, allowing the company to optimize its capital structure and motivate employees before a potential listing. Lastly, it reinforces a culture of shared accountability and ownership by expanding equity among employees.
Q3. What are the legal, tax, and compliance considerations that both Swiggy and its employees need to be aware of regarding this ESOP allotment?
Ans. From a compliance perspective, the ESOP allotment adheres to Section 62(1)(b) of the Companies Act, 2013, and other applicable Indian laws. While employees are not taxed at the time of grant, tax liabilities arise upon share exercise and eventual sale, typically as capital gains or perquisite income. Employees may need legal and financial advice to structure their benefits effectively as the plan matures.
Q4. How does Swiggy's ESOP allocation compare to industry trends among other top-tier Indian startups, and what are the implications of Swiggy being a privately held company in this context?
Ans. Swiggy's ESOP allocation aligns with a broader industry trend where top Indian startups like Zomato, Flipkart, and Razorpay are increasingly using equity-based rewards. However, unlike publicly listed companies like Zomato where ESOP monetization is more transparent, Swiggy's privately held status means employees may only realize the value of their shares upon a secondary transaction or an IPO. The allocation contributes to the growing trend of employee stakeholding in the Indian startup ecosystem, as highlighted by the significant ESOP buybacks in 2024.
Q5. What is the anticipated impact of this equity share issuance on Swiggy's corporate governance and existing shareholding structure?
Ans. The issuance of these new equity shares will have a marginal dilutive effect on existing shareholders. However, in high-growth tech startups with high valuations, such dilution is often considered acceptable if it leads to increased organizational productivity and employee retention. While the exact post-allotment shareholding structure isn't specified, the issuance likely constitutes under 1% of the expanded capital base, suggesting minimal disruption to core investor holdings and reinforcing sound corporate governance practices by aligning stakeholder interests.

India’s leading food and grocery delivery platform, Swiggy, has announced something big. The company has given 1.28 crore shares to its employees under the Employee Stock Option Plan (ESOP) 2024. This move is part of their plan to reward employees and help them benefit from the company’s success.

What Has Swiggy Done?

Swiggy has allotted 1,28,96,462 equity shares to its eligible employees. These shares were given under its ESOP 2024 scheme, where employees are allowed to buy company shares at a very low price, called the exercise price.

What is the Price of These Shares?

Swiggy is offering the shares at INR 1 per share, which is the face value. The current market price of the shares is about INR 343.75, which means the total value of these shares is INR 443.31 crore (approximately $52 million). So, employees are getting a big benefit through this plan.

How Did Swiggy’s Stock Perform After the Announcement?

On the day Swiggy made this announcement (April 22), the stock price showed some movement. It went up to INR 345.15, but later dropped slightly to INR 341.20. The fluctuation is normal, and may be due to market reactions and other economic factors.

Has Swiggy Done This Before?

Yes, Swiggy has been rewarding employees with shares for some time. Here’s a timeline of past allotments:

January 2025 – Swiggy allotted 2.61 crore shares.
February 2025 – Swiggy allotted 1.71 crore shares and 8.64 lakh shares.
November 2024 – Swiggy unlocked ESOPs worth INR 9,000 crore.

These rewards show how much Swiggy values its team.

How Did Employees Benefit?

In November 2024, Swiggy made 500 employees crorepatis (people who earned more than INR 1 crore) from ESOPs. Among them, 70 employees earned more than INR 8.5 crore each. This shows how much the ESOP scheme can help employees build wealth.

Why Is Swiggy Giving Shares to Employees?

The ESOP scheme helps Swiggy in many ways:

It rewards employees for their hard work.
It encourages them to stay with the company.
It makes employees feel like they own a part of the business.
It helps attract new talent in a competitive market.

Swiggy’s Agreement with the Government

Recently, Swiggy signed an agreement with the Ministry of Labour and Employment. The aim is to list gig job roles (like delivery partners) on the National Career Service (NCS) portal. Together, they want to create 12 lakh jobs in the next 2–3 years. This is a major move to support the gig economy.

Swiggy Launches ‘Pyng’ for Online Services

Swiggy is also expanding into professional services. They launched a new platform called Pyng, which allows users to connect with verified experts such as:

Financial advisors
Astrologers
Health and wellness professionals
Education and travel consultants

Pyng is currently offering offline services only in Bengaluru, but online services are available all over India.

Swiggy’s Financial Health – Is the Company Making Money?

Swiggy’s financial results for the third quarter of FY 2025 show a mixed picture:

Net Loss: INR 799 crore (a 39% increase from last year)
Operating Revenue: INR 3,993 crore (31% increase from last year)

While the company is growing in revenue, it is still making losses. Much of this is due to their heavy investment in quick commerce.

Instamart’s Role in Losses

Swiggy’s quick commerce service Instamart is growing fast, but it’s also expensive to run. The contribution margin (how much profit is made from each order) fell to -4.6%, down from -1.9% three months earlier. This means Swiggy is losing money on each Instamart order, but hopes to improve this in the future.

How Are Orders and Customers Growing?

Swiggy is growing fast in terms of users and orders:

Gross Order Value (GOV): INR 12,165 crore (up 38% year-on-year)
Monthly Transacting Users (MTU): 17.8 million users (up 25.3%)
One-third of the users use more than one service offered by Swiggy.

This shows that Swiggy has a strong and loyal customer base.

Swiggy’s Food Delivery Business

Swiggy’s core business, food delivery, is still doing well:

Revenue: INR 1,636 crore
Quarter-on-quarter growth: 3.7%
Year-on-year growth: 23%

This steady growth shows that Swiggy’s main business is strong and stable.

Conclusion

Swiggy’s decision to allot 1.28 crore shares under ESOP 2024 shows that the company is focused on keeping its employees happy and motivated. While the company is still facing losses, especially in quick commerce, its overall business is growing steadily.

Swiggy’s efforts to expand services, reward employees, and collaborate with the government show that it is preparing for a strong future—possibly even an IPO soon. With a growing user base, new services like Pyng, and plans to support gig workers, Swiggy is building a more diverse and resilient business model.

FAQs

Q1. What is the significance of Swiggy allotting 1.28 crore equity shares under its ESOP 2024 scheme, and what is the approximate market value of these shares?

Ans. Swiggy's allotment of 1.28 crore equity shares under its ESOP 2024 is a significant move reflecting its focus on employee-centric growth and talent retention. With a face value and exercise price of Rs.1 per share, the total market value of the allocated equity is approximately Rs.443.31 crore (USD 52 million), based on the latest valuation metrics. This large-scale allocation serves as a non-cash incentive to reward and retain employees.

Q2. What are the key strategic implications of this large-scale ESOP issue for Swiggy, particularly in terms of talent management and potential future events like an IPO?

Ans. This ESOP issue has several strategic implications for Swiggy. Firstly, it aids in talent retention and motivation in a competitive environment by aligning long-term employee interests with the company's success. Secondly, market analysts suggest it could be a precursor to Swiggy's anticipated IPO, allowing the company to optimize its capital structure and motivate employees before a potential listing. Lastly, it reinforces a culture of shared accountability and ownership by expanding equity among employees.

Q3. What are the legal, tax, and compliance considerations that both Swiggy and its employees need to be aware of regarding this ESOP allotment?

Ans. From a compliance perspective, the ESOP allotment adheres to Section 62(1)(b) of the Companies Act, 2013, and other applicable Indian laws. While employees are not taxed at the time of grant, tax liabilities arise upon share exercise and eventual sale, typically as capital gains or perquisite income. Employees may need legal and financial advice to structure their benefits effectively as the plan matures.

Q4. How does Swiggy's ESOP allocation compare to industry trends among other top-tier Indian startups, and what are the implications of Swiggy being a privately held company in this context?

Ans. Swiggy's ESOP allocation aligns with a broader industry trend where top Indian startups like Zomato, Flipkart, and Razorpay are increasingly using equity-based rewards. However, unlike publicly listed companies like Zomato where ESOP monetization is more transparent, Swiggy's privately held status means employees may only realize the value of their shares upon a secondary transaction or an IPO. The allocation contributes to the growing trend of employee stakeholding in the Indian startup ecosystem, as highlighted by the significant ESOP buybacks in 2024.

Q5. What is the anticipated impact of this equity share issuance on Swiggy's corporate governance and existing shareholding structure?

Ans. The issuance of these new equity shares will have a marginal dilutive effect on existing shareholders. However, in high-growth tech startups with high valuations, such dilution is often considered acceptable if it leads to increased organizational productivity and employee retention. While the exact post-allotment shareholding structure isn't specified, the issuance likely constitutes under 1% of the expanded capital base, suggesting minimal disruption to core investor holdings and reinforcing sound corporate governance practices by aligning stakeholder interests.