News: Swiggy board confirms $4 million employee share buyback program

Compensation & Benefits

Swiggy board confirms $4 million employee share buyback program

The board's approval comes at a time when Swiggy is in talks with DST Global and other investors for its largest funding yet.
Swiggy board confirms $4 million employee share buyback program

Swiggy board approves its first employee stock repurchase program, making Swiggy one of the youngest internet companies to make the offer. The amount of the share buyback is over $4 million (INR 27 crore), and the stock repurchase program will take place in June. As per the report, existing employees looking to participate in the buyback offer will be able to tender up to 50 percent of their vested options by June 1 for a repurchase. 

The Bengaluru based company currently employs more than 2,500 people and its stock option pool accounts for about 3.4 percent of the company’s total equity. It was worth about INR 161 crore post its $100-million funding in February. However, it is still unclear that how many of the employees will qualify for the share repurchase program. 

About six months before logistics firm BlackBuck offered a similar program and allowed its employees to take in returns of up to 11 times. Under BlackBuck’s share buyback program about 35 of its 150 eligible employees were seen opting for it.

Earlier in December, Flipkart also completed its fourth ESOP repurchase plan worth $100 million, the largest ever by a private company in the country. 

Although the size of the buyback program of Swiggy is not that large, it is significant given that Swiggy is only four years old company.  Also, this approval comes at a time when the company is in advanced talks with DST Global, and other investors for its largest funding yet. Reportedly, it is in talks to raise about $200 million which is expected to value the firm at about $1.3 billion. This deal would make it the fastest online firm to join India's unicorn club of companies estimated to be worth at least $1 billion. 

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Topics: Compensation & Benefits

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