Flipkart begins MEGA cash payout, to pay estimated USD 700 million to staff post PhonePe separation

Walmart-backed Flipkart on Friday began mega cash payout to staff, estimated to be worth USD 700 million, following its separation from fintech firm PhonePe.

The board of directors of Flipkart had announced the complete separation from the PhonePe business by selling off its entire shareholding in December 2022.

Accordingly, the board decided to pay USD 43.67 as compensation for each ESOP (vested options for eligible current and former stakeholders and unvested options only for eligible current stakeholders) as of the record date of December 23, 2022.

"Further to the communication made on April 21, 2023, regarding this payout, I am delighted to inform you that the much-awaited compensation will be made today, July 14, 2023," Flipkart CEO Kalyan Krishnamurthy said in an internal e-mail, seen by PTI.

In response to an e-mail query by PTI, the company confirmed that the payout following the separation of PhonePe (announced in December 2022) has been made to employees.

Meanwhile, in the internal mail to staff, Flipkart CEO acknowledged "good work across the business" as he thanked all teams for their consistent and dedicated efforts.

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

Flipkart's top boss promised the staff that they will receive the details of individual payout by the following week.

"We have exciting times ahead and as we continue to grow across businesses, I look forward to your dedication and determination to bring about the future that we envision and scale new heights together," he said.