Bonanza! Swiggy Staffers Hit Jackpot

Swiggy’s stock market debut is set to transform the financial futures of around 500 employees who will become crorepatis through their stock ownership. The initial public offering (IPO) represents one of the largest wealth creation events in India’s startup ecosystem, with the Bengaluru-based food delivery platform’s employee stock ownership plan (ESOP) valued at Rs 8,690 crore, benefiting 5,000 current and former employees. Swiggy has already disbursed Rs 500 crore to staff through ESOPs.

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Swiggy’s IPO is one of the year’s most anticipated public issues, with the Rs 11,327 crore ($1.4 billion) listing marking the largest technology firm offering since Paytm’s IPO in 2019. The IPO’s price band was set at Rs 371-390 per share, and it saw a 3.59-times subscription, primarily driven by institutional investors. This offering follows a pattern of significant wealth creation in India’s tech sector, with similar milestones reached by firms such as Flipkart and Freshworks.

In 2023, Flipkart’s $700-million ESOP buyback post-Walmart’s acquisition rewarded 20,000 staff members, while Nasdaq-listed SaaS company Freshworks created 500 millionaires through its 2021 public offering. Among them, 70 employees were under 30, highlighting the potential of tech sector growth to reshape lives.

Swiggy’s IPO comes amid fierce competition with Zomato, its major rival in food delivery and quick commerce. As both companies vie for dominance in consumer-focused digital services, Swiggy’s market debut underscores the potential for substantial growth within India’s startup and technology sectors. Industry experts note that 2024 has seen a resurgence in IPO activity, marking a robust period for fundraising within the sector.

Companies like Blackbuck, Mobikwik, and Ather Energy have also lined up IPOs, contributing to a wave of investment opportunities in tech-driven enterprises.