While Reddy is also the company’s chief innovation officer, Addepalli is Swiggy’s chief growth officer.
For Majety, which owns a 6.23% stake in the company on a fully diluted basis, the additional Esops granted through the 2024 plan could result in an additional 2.2-2.5% stake. It will sell a stake worth $7.5 million through the offer for sale (OFS) component of the IPO.
Between July and September, Majety and Reddy sold Swiggy shares through secondary transactions. While Majety offloaded a stake worth about $23 million, Reddy sold shares worth $12 million. ET had reported on September 27.
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Ha ha, who joined Swiggy in September from e-commerce marketplace Flipkart, received options worth $13.3 million, while Kapoor, who has been with the company since August 2022, received stock options worth $9.8 million according to the latest Aesop’s plan
Swiggy had also granted stock options worth $5.7 million to Ashwath Swaminathan under the scheme. Swaminathan resigned as the company’s chief growth and marketing officer effective September 30.
Without a doubt, the stock options granted to the company’s senior management – under the Esop 2024 Scheme – have a vesting period of one to eight years from the date of grant. Any changes in the company’s stock price after public listing could also result in changes in the valuation of stock awards offered.
Companies often grant additional stock options to founders and senior management as incentives to perform before going public. This trend is especially prevalent in consumer internet companies, where founders see huge dilution of their stakes across multiple fundraising rounds.
The development was first reported by online news publication The Arc.
drink has filed regulatory filings for its $1.25 billion initial public offering with the Securities and Exchange Board of India (Sebi) in April under the regulator’s confidential filing route. It filed an updated draft prospectus in September after receiving approval from Sebi.
However, the new issue component of the offering, initially valued at $450 million, could, expand to $600 million. Apart from Majety and Reddy, Swiggy’s top investors who will participate in the OFS component of the issue include the company’s largest shareholder. ProsusNorwest Venture Partners, Elevation Capital, Accel, Coatue and Alpha Wave Global.
In 2021, Swiggy’s main rival Zomato gave its founder and CEO, Deepinder Goyal, stock-based compensation worth nearly $376 million at the time. As of June 30, Goyal owned a 4.2% stake in Zomato valued at more than 1.2 billion dollars.
Similarly, pay Parent company One 97 Communications had also awarded Esops to its founder and CEO Vijay Shekhar Sharma in 2021, ahead of the fintech company’s initial public offering. However, these subsidies are said to have come under the scanner of markets regulator Sebi earlier this year.
Other tech startups, such as Freshworks, Delhivery and PB Fintech, have also given equity-based awards to their founders and senior management ahead of their IPOs in 2021 and 2022. These executives include Freshworks founder and now former CEO Girish Mathrubootham, founder and CEO of Delhivery, Sahil Barua, and PB Fintech Founders Yashish Dahiya and Alok Bansal.
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