25,000 Flipkart Employees To Benefit From $700 Million Cash Payout: Report

New Delhi:

E-commerce big Flipkart has deliberate to award a one-time payout of $700 million to its staff. The transfer is prone to profit as much as 25,000 of Flipkart’s present and previous staff, reported Moneycontrol quoting sources. 

Kalyan Krishnamurthy, the Flipkart CEO (chief govt officer), introduced the money payout in an inside e mail to its staff final week. The payout will likely be out there to holders of worker inventory choices. “We’re happy to announce that staff, who’re holders of Flipkart ESOPs (worker inventory choice plans), will obtain a one-time discretionary money payout as a part of the transaction. This payout represents the worth of the PhonePe holding inside these Flipkart choices,” the e-mail accessed by Moneycontrol, learn. 

The CEO wrote that whereas the brand new share value of Flipkart was decided at $165.83 per choice, the worker payout will likely be at $43.67 per choice.

Of the $700 million payout, the highest 20 staff of Flipkart, together with the senior workers, will rise up to $200 million, the report added, quoting individuals conversant in the event. Those that will obtain the payout embrace staff from Flipkart, Myntra, and PhonePe.

Flipkart and PhonePe, in a joint assertion launched final week, introduced that they’ve accomplished their separation and can now function beneath retail big Walmart. “As a part of this transaction, present Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, have bought shares instantly in PhonePe India. This completes the transfer to make PhonePe a totally India-domiciled firm, a course of that began earlier this yr,” the assertion learn. Flipkart Group acquired PhonePe in 2016. After the separation, Walmart will stay the bulk shareholder of each entities. 

PhonePe Founder and CEO Sameer Nigam stated they purpose to spend money on new companies corresponding to wealth administration, lending, and insurance coverage whereas additionally “enabling the following wave of progress for UPI funds in India.”

(Aside from the headline, this story has not been edited by NDTV workers and is printed from a syndicated feed.)