Swiggy, one of India’s leading food delivery and quick commerce platforms, has taken a significant step toward strengthening its employee ownership program. On 22 April 2025, the company allotted 36,32,264 equity shares under its Swiggy ESOP Plan 2015 and Swiggy ESOP Plan 2021. This move reflects Swiggy’s long-standing commitment to rewarding and retaining talent through equity-based incentives.
With this latest issuance, Swiggy increased its paid-up equity share capital from Rs. 2,28,64,80,881 to Rs. 2,29,01,13,145. The number of total outstanding shares has also risen accordingly, growing from 2,28,64,80,881 to 2,29,01,13,145 equity shares, each having a face value of Re. 1.
ESOPs Reflect Swiggy’s Focus on Talent Retention
By issuing over 3.6 million shares to eligible employees, Swiggy continues to emphasize its belief in long-term employee engagement and performance-based rewards. The exercise of stock options under both the 2015 and 2021 ESOP schemes demonstrates growing internal participation and confidence in the company’s future trajectory.
Swiggy launched its first ESOP program in 2015 to align employees with the company’s value creation. Later, it rolled out a broader 2021 plan to accommodate its growing workforce and attract top talent across tech, operations, and corporate roles. These stock options have enabled thousands of employees to gain a direct stake in Swiggy’s growth story, creating a strong ownership culture within the company.
Details of the Equity Capital Expansion
Swiggy updated its capital structure by increasing its paid-up share capital by Rs. 36,32,264 — exactly matching the number of newly allotted equity shares. Each share carries a face value of Re. 1, and the transaction has taken place in compliance with the Companies Act, 2013 and relevant SEBI guidelines governing unlisted public companies.
The equity shares allotted under the ESOPs rank pari passu with the existing equity shares of the company. This means that employees who exercised their options now hold fully paid-up shares that carry voting rights and entitle them to participate in dividend declarations and other shareholder benefits.
Strategic Timing Amid IPO Expectations
The timing of this allotment carries strategic weight. Over the past year, market analysts and investors have closely watched Swiggy’s movements, expecting the company to announce its initial public offering (IPO) soon. Swiggy has already achieved unicorn status and continues to expand into quick commerce and hyperlocal logistics through its Instamart and Genie services.
By increasing the number of shareholders and facilitating ESOP conversions, Swiggy appears to be streamlining its capital structure and preparing for a future listing. Granting equity to employees also aligns with the broader IPO-readiness strategy, which typically involves cleaning up the cap table, consolidating stakeholder interests, and motivating staff through pre-IPO liquidity options.
A Trend Among Indian Startups
Swiggy’s move mirrors a broader trend across Indian startups and tech companies. Many high-growth companies — including Zomato, Paytm, OYO, and Flipkart — have relied on ESOPs as a strategic HR tool to attract and retain high-quality talent in a fiercely competitive hiring landscape. In a market where stock options often serve as a substitute for high fixed compensation, ESOPs play a vital role in employee wealth creation.
More importantly, Swiggy has joined companies like Razorpay, Lenskart, and Zerodha in executing ESOP buybacks and allotments regularly. These actions reflect a matured ecosystem where employees are no longer just salaried staff but co-owners with a vested interest in the firm’s long-term success.
Growing Liquidity Options for ESOP Holders
Swiggy has actively facilitated secondary transactions and ESOP liquidity events in the past, allowing employees to monetize a portion of their vested shares. As the company edges closer to its IPO, insiders expect more such opportunities to surface.
By allotting fresh shares now, Swiggy also gives employees a stronger position ahead of any secondary sales or listing events. Employees who exercise their options early enjoy a lower cost of acquisition and potentially higher post-IPO gains.
In recent years, Swiggy’s investor roster — which includes names like SoftBank, Prosus, Accel, and Alpha Wave — has expressed interest in enabling employee exits through structured buybacks or public offerings. These backers have supported Swiggy’s ESOP programs, viewing them as tools to boost morale, reduce attrition, and build loyalty across ranks.
Business Performance Underpins Shareholder Confidence
Swiggy’s decision to issue over 36 lakh shares reflects growing internal belief in the company’s financial and operational strength. Over the past 18 months, Swiggy has pursued a dual focus: reducing losses in its food delivery business while aggressively scaling its quick commerce arm, Instamart.
According to industry reports, Swiggy has narrowed its EBITDA losses per order, improved delivery efficiency, and optimized customer acquisition costs. Meanwhile, Instamart has emerged as a revenue powerhouse, with rising order volumes and growing customer retention in urban centers like Bangalore, Hyderabad, Mumbai, and Delhi.
Additionally, Swiggy recently introduced AI-powered logistics tools, expanded its cloud kitchen partnerships, and experimented with subscription models to boost unit economics. These innovations have boosted investor and employee confidence, reflected in the rising interest in ESOP conversions.
Regulatory Compliance and Governance
Swiggy has adhered to all legal and procedural requirements for this share allotment. The company filed necessary resolutions, maintained board approval records, and updated its capital structure with the Ministry of Corporate Affairs (MCA). As a private limited company, Swiggy operates under stringent governance protocols that include quarterly audits, independent board oversight, and regular investor disclosures.
By maintaining compliance and transparency, Swiggy ensures that its ESOP holders receive legitimate, legally protected equity. Such diligence builds long-term trust and enhances Swiggy’s corporate credibility ahead of any future listing or fundraising activity.
Future Outlook for Swiggy ESOPs
With this latest allotment, Swiggy has reaffirmed its belief in employee wealth creation through equity participation. Analysts expect further allotments as more employees exercise their vested options. The company’s growing valuation, coupled with the anticipated IPO, will likely prompt greater interest in exercising and holding ESOPs over the coming quarters.
Looking ahead, Swiggy may also explore ESOP trust structures, performance-linked vesting, and employee stock purchase plans (ESPPs) to diversify its equity incentive portfolio. As competition in the quick commerce and food delivery segments intensifies, Swiggy will continue to rely on equity rewards as a powerful differentiator in attracting top talent and maintaining a motivated workforce.
Conclusion
Swiggy’s latest equity share allotment marks more than just a capital update — it represents the company’s evolving relationship with its employees and its readiness for a more mature, public-facing future. By allotting over 36 lakh shares under its ESOP programs, Swiggy empowers its workforce, reinforces its commitment to shared success, and positions itself firmly for the next phase of growth.
