Flipkart To Buyback Employee Stock Options Worth Rs 600 Cr
- ByStartupStory | July 13, 2021
Walmart-owned Flipkart is buying back employee stock option (ESOP) worth Rs. 600 Crore, a move that will create new dollar millionaires. In an email to employees, Flipkart Group Chief Executive Officer Kalyan Krishnamurthy lauded the critical role played by the staff in reaching this milestone, “… it has always been our endeavor to provide our employees with an opportunity to liquidate their vested options regularly. This year, we are pleased to announce a buyback of 5 percent of the past three years’ vested options. With this landmark event for us, I am happy to share that we are offering our employees an additional buyback of 5 percent of all vested options as we stay committed to wealth creation for you,” he said.
They added that about 6,000 people are expected to benefit from the buyback. The company confirmed the development but did not disclose any details. Employees are granted options based on their tenure, performance, and contributions to the company. In his email, Krishnamurthy said the fund infusion received by Flipkart is “one of the most significant investments in the digital commerce ecosystem in India, reflecting the opportunity for digital commerce in India and the confidence of investors in our ability to address this potential”.
Founded in 2007, the Flipkart Group includes Flipkart, fashion specialty site Myntra, and Ekart (logistics and supply chain arm). The group is also a majority shareholder in digital payments platform PhonePe.Flipkart Group has raised $3.6 billion in funding led by Singapore’s sovereign wealth fund GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart, valuing the e-commerce giant at $37.6 billion.
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