Flipkart and PhonePe announced last week that they have finalized their divorce. (File)
New Delhi:
E-commerce giant Flipkart plans 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 former employees, Moneycontrol reported citing sources.
Kalyan Krishnamurthy, Flipkart’s CEO (chief executive officer), announced the cash payout in an internal email to his employees last week. The payout is 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 payment as part of the transaction. This payout represents the value of the PhonePe holding within those Flipkart options,” reads the email Moneycontrol accessed.
The CEO wrote that while Flipkart’s new share price was set at $165.83 per option, the payout to the employee will be $43.67 per option.
Of the $700 million payout, Flipkart’s top 20 employees, including senior staff, will receive up to $200 million, the report said, citing people familiar with the development. Those who will receive the payout include employees of Flipkart, Myntra, and PhonePe.
Flipkart and PhonePe announced in a joint statement last week that they have finalized their separation and will now operate under retail giant Walmart. “As part of this transaction, existing shareholders of Flipkart Singapore and PhonePe Singapore, led by Walmart, have directly purchased shares in PhonePe India. This completes the move to make PhonePe a wholly Indian-based company, a process that began earlier this year,” the statement said. Flipkart Group acquired PhonePe in 2016. Following the separation, Walmart will remain the majority owner of both entities.
PhonePe founder and CEO Sameer Nigam said they want to invest in new businesses such as asset 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 DailyExpertNews staff and is being published from a syndicated feed.)
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