Flipkart makes nearly $700 mn cash payout to staff post PhonePe separation

Walmart-backed Flipkart on Friday began making massive cash payments to employees, valued at $700 million, after it split from fintech firm FoneBiPhone.

Flipkart’s board of directors announced a complete separation from the PhonePe business by selling its entire stake in December 2022.

Accordingly, the Board has decided to pay $43.67 in compensation per ESOP (vested options for current and former eligible stakeholders and unvested options for eligible current stakeholders only) as of the standard date of December 23, 2022.

“In addition to the letter made on April 21, 2023, regarding these payments, I am pleased to inform you that the long awaited compensation will be made today, July 14, 2023,” Flipkart CEO Kalyan Krishnamurthy said in an internal email. , seen by PTI.

In response to an email inquiry by PTI, The company has confirmed that payments after the dismissal of PhonePe (which was announced in December 2022) have been made to employees.

Meanwhile, in the internal employee mail, Flipkart’s CEO acknowledged the “good work across the company” as he thanked all the teams for their continued and dedicated efforts.

“It is your commitment to purpose that continues to drive success for Flipkart,” Krishnamurthy wrote.

Flipkart’s senior manager promised the employees that they would get the individual payment details by the following week.

He said: “We have exciting times ahead, and as we continue to grow across the business, I look forward to your dedication and determination to achieve the future we imagine and soar to new heights together.”