In a remarkable display of wealth creation, Flipkart, the e-commerce giant, is set to provide a total of $700 million in employee stock option (ESOP) payouts to 19,000 current and former employees. The move comes as Flipkart aims to strengthen talent retention and recruitment amidst a challenging funding landscape, where many startups are grappling with layoffs.
According to sources familiar with the matter, former employees and others have already received their payouts, with each share valued at approximately $43. The distribution of the entire $700 million is expected to be completed within this month, prioritizing long-serving employees rather than solely focusing on senior management.
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Flipkart's CEO, Kalyan Krishnamurthy, conveyed the news to employees through an internal email, expressing his delight and acknowledging the dedicated efforts of the team involved in making this initiative a reality. He also emphasized the company's commitment to its purpose and thanked all teams for their consistent contributions.
Last month, Walmart, the US-based retailer that operates Flipkart and PhonePe, projected both businesses to potentially reach a valuation of $100 billion each, buoyed by their strong growth.
The complete separation of PhonePe from Flipkart was announced by the Board of Directors in December 2022, leading to the current payout arrangement. Each eligible stakeholder, including current and former employees, will receive compensation for their vested and unvested options, based on the record date of December 23, 2022.
As Flipkart continues to expand across various domains, Krishnamurthy expressed confidence in the exciting times ahead and urged employees to maintain their dedication and determination to realize the envisioned future together.
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