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25,000 Flipkart employees benefit from $700 million cash payout: Report


25,000 Flipkart employees benefit from $700 million cash payout: Report

Flipkart and PhonePe announced last week that they have finalized their split. (File)

New Delhi:

E-commerce giant Flipkart has planned to give a one-time payment of $700 million to its employees. The move is likely to benefit up to 25,000 current and former Flipkart workers, reports money control cite sources.

Kalyan Krishnamurthy, CEO (chief executive officer) of Flipkart, announced the cash payment in an internal email to his employees last week. The payout will be available to employee stock option holders. “We are pleased to announce that employees, who hold the Flipkart ESOP (employee stock option plan), will receive a one-time discretionary cash payment as part of the transaction. This payment represents the value of PhonePe holding in those Flipkart options,” email accessed by money controlread.

The executive wrote that while Flipkart’s new share price is determined at $165.83 per option, the employee payout will be at $43.67 per option.

Of the $700 million payout, Flipkart’s top 20 employees, including senior employees, will receive up to $200 million, the report added, citing people familiar with the development. develop. Those who will receive the payment include employees from Flipkart, Myntra and PhonePe.

Flipkart and PhonePe, in a joint statement issued last week, announced that they have completed their separation and will now operate under retail giant Walmart. “As part of this transaction, the current shareholders of Flipkart Singapore and PhonePe Singapore, led by Walmart, bought a direct stake in PhonePe India. This completes the move to transform PhonePe into a company based entirely in India, a process that began earlier this year,” the statement read. Flipkart Group acquired PhonePe in 2016. After the split, Walmart will remain the majority shareholder of both entities.

PhonePe founder and CEO Sameer Nigam said it aims to invest in new businesses such as wealth management, lending and insurance while “facilitating the next wave of growth for payments.” UPI accounting in India”.

(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)

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