Swiggy, one of India’s biggest food delivery and quick commerce companies, has granted ESOPs worth Rs 150 crore under its 2024 plan. According to filings with the National Stock Exchange (NSE), the Bengaluru-based firm has issued total 38.86 lakh employee stock options (ESOPs).
Each option is priced at just Rs 1 and will convert into a fully paid-up equity share after the vesting period. Based on Swiggy’s market valuation of Rs 385.3 per share, the total value of the grant amounts to nearly Rs 150 crore. These shares aim to reward and retain key team members.
Swiggy ESOPs 2024 Plan
This Swiggy ESOPs grant follows an earlier move in April, when it allocated Rs 443.4 crore in stock options to employees. The company’s latest decision shows its long-term focus on building ownership and loyalty among its staff, even during financially challenging times.
The announcement comes shortly after Swiggy entered the travel and lifestyle market through a new app named Crew. This expansion signals the company’s push to diversify beyond food delivery and quick commerce.
Company Faces Losses
Despite these employee-focused steps, Swiggy’s financial performance has taken a hit. In the fourth quarter of FY25, the company reported a loss of Rs 1,081 crore, nearly double compared to the previous year. This 95% increase in losses raises questions about long-term sustainability.
However, revenue rose by 45% during the same quarter, reaching Rs 4,410 crore. For the entire financial year, Swiggy posted a revenue of Rs 15,227 crore, showing growth despite the increasing operational costs.
Rivals Mixed Results
While Swiggy continues to burn cash, competitor Zomato has reported a profit of Rs 39 crore in Q4 FY25. Another quick-commerce player, Zepto, also showed signs of progress by bringing down its annual losses to Rs 1,248 crore in FY24.
This contrast highlights the pressure Swiggy faces in keeping up with rivals that are finding paths to profitability. However, Swiggy’s focus on rewarding employees and diversifying offerings indicates a broader strategic play.
Quick Commerce in India
Quick commerce is one of the fastest-growing sectors in India, with startups like Swiggy, Zepto, and Blinkit racing to deliver essentials and meals within minutes. While the market potential is massive, companies face high delivery costs and competition. The success of players in this space will depend on balancing growth with profitability.
Swiggy’s ESOP move suggests it is banking on long-term value creation, aiming to build a strong team that can weather short-term losses and help shape the future of quick commerce in India.
