Food delivery platform Swiggy has granted $270 million (nearly Rs 2,240 crore) worth of stock options to its senior leadership ahead of its anticipated initial public offering (IPO), according to the company’s pre-listing prospectus. According to Swiggy’s updated draft red herring prospectus, the company’s founder and CEO Sriharsha Majety has received a significant amount of the Employees Stock Ownership Plan (ESOP) worth $200 million of stock options.
The ESOPs will raise Majety’s stake in Swiggy from 6.23 per cent to about 8.43-8.73 per cent. He will offload his equity shares worth $7.5 million in Swiggy in the upcoming IPO.
Swiggy filed its updated DRHP on September 26. Earlier, the company had filed a confidential DRHP with capital markets regulator Sebi.
Swiggy’s Employee Stock Ownership Plan (ESOP) was launched in April 2024.
Majety and his fellow co-founder Nandan Reddy had already sold a portion of their shares in Swiggy through secondary transactions between July and September 2024.
List of Other Executives Who Have Got ESOPs
Nandan Reddy (co-founder of Swiggy): He sold nearly $12 million worth of shares between July and September.
Madhusudhan Rao (chief technology officer): Leading Swiggy’s tech innovation, Rao received significant stock options.
Rahul Bothra (chief financial officer): Tasked with navigating Swiggy’s finances ahead of its IPO, Bothra has been rewarded for his role in the company’s growth.
Phani Kishan Addepalli (chief growth officer): Addepalli has also been hand over significant stock options under the new ESOP plan.
Amitesh Jha (CEO of Swiggy Instamart): Jha was appointed CEO of Swiggy Instamart in September 2024. Prior to this, he was with Flipkart. Jha has been granted stock options worth around $13.3 million.
Rohit Kapoor (CEO, Food Marketplace): With Swiggy since August 2022, Kapoor received options worth approximately $9.8 million.
Last week, food delivery platform Zomato also approved a total grant of 12 million stock options to the eligible employees, under the Foodie Bay Employee Stock Option Plan 2014 (ESOP 2014) and the Zomato Employee Stock Option Plan 2021 (ESOP 2021). At the current share price, the entire ESOPs scheme becomes worth around Rs 350.17 crore.
Swiggy IPO: What We Know So Far
Food and grocery delivery major Swiggy late last month filed its updated draft papers with Sebi to raise funds through its much-anticipated Rs 10,000-crore IPO. The updated draft filing came soon after Swiggy’s confidential offer document was approved by Sebi earlier.
The proposed IPO comprises a fresh issue of equity shares worth Rs 3,750 crore and an offer-for-sale (OFS) of 18.52 crore equity shares by existing shareholders, according to the updated draft red herring prospectus (UDRHP).
Those selling shares in the OFS route are — Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V BV, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings BV, Norwest Venture Partners VII-A Mauritius and Tencent Cloud Europe BV.
According to a PTI report citing sources, Swiggy plans to garner up to Rs 3,750 crore funds through fresh equity shares, in addition to an offer-for-sale component of up to Rs 6,664 crore.
Swiggy is also looking to raise funds a pre-IPO round. If this occurs, the size of the fresh issue will be reduced accordingly. The company filed its offer document on April 30 through the confidential pre-filing route.
Under the confidential filing process, Sebi reviews confidential DRHP and provides comments on it. Thereafter, the company going public is required to file an update to the confidential DRHP (UDRHP-I) after incorporating the regulator’s comments. This UPDRHP-I is made available for public comments over 21 days.
Finally, after incorporating the changes due to public comments, the company is required to update the DRHP-II (UDRHP-II).
Swiggy IPO Opening Date
Swiggy can launch its IPO once the final prospectus is filed.
Swiggy IPO Proceeds Utility
Going by the IPO papers, proceeds from the fresh issue to the tune of Rs 137.41 crore will be used for debt payment of subsidiary Scootsy.
Additionally, Rs 982.40 crore will be invested in Scootsy to expand the Dark Store network in the Quick Commerce segment, with Rs 559.10 crore allocated for setting up Dark Stores and Rs 423.30 crore for lease or license payments.
The company will also invest Rs 586.20 crore in technology and cloud infrastructure, Rs 929.50 crore for brand marketing and business promotion, and funds will be allocated for inorganic growth and general corporate purposes.
Founded in 2014, Swiggy had a valuation of nearly USD 13 billion in April. The company’s annual revenue stood at USD 1.09 billion as of March 31, 2023, and has more than 4,700 employees, according to Tracxn, a global startup data platform.
In April, sources had previously stated that Swiggy received shareholders’ approval for an IPO to raise Rs 10,414 crore fund through the issue of fresh equity shares and an offer for sale.
A special resolution was passed at an extraordinary general meeting of Swiggy on April 23, they stated.
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