Flipkart and PhonePe announced last week that they have completed their separation. (File)
New Delhi:
E-commerce giant Flipkart has planned to award a one-time payout of $700 million to its employees. The move is likely to benefit up to 25,000 of Flipkart’s current and past workers, reported Moneycontrol quoting sources.
Kalyan Krishnamurthy, the Flipkart CEO (chief executive officer), announced the cash payout in an internal email to its employees last week. The payout will be available to holders of employee stock options. “We are pleased to announce that employees, who are holders of Flipkart ESOPs (employee stock option plans), will receive a one-time discretionary cash payout as part of the transaction. This payout represents the value of the PhonePe holding within those Flipkart options,” the email accessed by Moneycontrol, read.
The CEO wrote that while the new share price of Flipkart was determined at $165.83 per option, the employee payout will be at $43.67 per option.
Of the $700 million payout, the top 20 employees of Flipkart, including the senior staff, will get up to $200 million, the report added, quoting people familiar with the development. Those who will receive the payout include employees from Flipkart, Myntra, and PhonePe.
Flipkart and PhonePe, in a joint statement released last week, announced that they have completed their separation and will now operate under retail giant Walmart. “As part of this transaction, existing Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, have purchased shares directly in PhonePe India. This completes the move to make PhonePe a fully India-domiciled company, a process that started earlier this year,” the statement read. Flipkart Group acquired PhonePe in 2016. After the separation, Walmart will remain the majority shareholder of both entities.
PhonePe Founder and CEO Sameer Nigam said they aim to invest in new businesses such as wealth management, lending, and insurance while also “enabling the next wave of growth for UPI payments in India.”
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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