$700M payout awarded to Flipkart employees after PhonePe break up

Flipkart broadcasts $700 million money fee to staff

Bengaluru-based Walmart-backed startup Flipkart has began paying $700 million in money to its staff. The compensation is the biggest of its variety within the Indian startup ecosystem and comes within the wake of fintech firm PhonePe’s exit from Flipkart, leading to a devaluation of Flipkart’s shares.

PhonePe Unbundling

Flipkart’s fintech arm, PhonePe, demerged its full possession from Flipkart final yr. As a part of the deal, shareholders of the Singapore models of Flipkart and PhonePe bought a possibility to purchase shares in PhonePe’s Indian unit instantly. PhonePe has not solely separated from Flipkart however has additionally shifted its headquarters to India. The corporate has raised $850 million in current quarters to develop its attain and enterprise in new classes together with e-commerce.

pay employees

In an e mail despatched to staff, Flipkart Group CEO Kalyan Krishnamurthy introduced the much-anticipated money compensation. Fee was made on the identical day. Nevertheless, the corporate didn’t disclose the variety of staff who’ve obtained the fee.

conclusion

The $700 million money fee by Flipkart to its staff displays the corporate’s dedication to valuing its workforce. The compensation is critical and serves as a recognition of the influence the PhonePe demerger can have on Flipkart’s shares. The switch highlights Flipkart’s dedication to rewarding its staff and fostering an upbeat work setting.

inquiries to ask

1. Why is Flipkart providing money fee to its staff?

Flipkart is compensating its staff for separation from the e-commerce conglomerate PhonePe, which led to the devaluation of Flipkart shares.

2. How a lot is the down fee?

The money payout quantities to $700 million, making it the biggest compensation of its variety within the Indian startup ecosystem.

3. What’s the motive behind PhonePe’s separation from Flipkart?

PhonePe demerged its full possession from Flipkart final yr. The choice was aimed toward giving shareholders of each the businesses a possibility to instantly purchase shares within the Indian unit of PhonePe.

4. Has PhonePe shifted its headquarter?

Certain sufficient, PhonePe has moved its headquarters to India after being separated from Flipkart.

5. How a lot funding has PhonePe raised within the current quarters?

PhonePe has raised $850 million in current quarters to strengthen its market place and discover new classes like e-commerce.

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