Around 670 Crore Earned By Trading Shares By Flipkart Staff
Flipkart, a home-based retailer, bought back shares worth $100 Million (Rs 670 Crore) to his staff. It is one of the largest employee stock options (ESOP) on behalf of a private company in the country. This move of the company will no doubt benefit its existing and former employees.
The Bangalore-based e-retailer said that Flipkart Group’s employees joined the buyback offer and it became one of the largest ESPO repurchase programs in the country. Buyback offers were given to all employees of Flipkart, Myntra, Jabong, and PhonePe. Flipkart said it gave fifth chance to dissuade its employee to some of its stock options in the company.
In case of size, it is not just Flipkart but also the largest buyback program in any other startup sector of the country. Two employees selling their shares said that this initiative makes a big difference to both the employees working in the company and those who want to join the company.
Flipkart chairman Sachin Bansal and the group’s CEO Binny Bansal said, “Employees are a big means of our strength without which Flipkart couldn’t stand E-commerce industry in India. As an organization, we hope to have a similar partnership in Flipkart’s success. ESOP program is a way to extend this culture and thank you for your dedication and hard work of the years. We are not only happy to set benchmarks on this important scale in the startup industry but also in the whole private sector of India.”
It is worth mentioning that Paytm and Logistics Venture Blackbuck also brought similar buyback options for their staff. Even during the acquisition of online firm Citrus, 50 employees of the company had made a lot of money by selling their shares.
This monetary perks and opportunities provided by the startups have certainly created some employee-centric benchmarks that are hard to see in the private sector and specifically in the firms that have established their business with a viewpoint of India’s unpredictable business conditions.
Prior to this year, Flipkart had closed a funding deal of $4 Billion from Chinese Internet giants Tencent, SoftBank, and software giant, Microsoft. In November this year, Valic Co., a mutual fund investor, brought down the valuation of Flipkart to $7.9 Billion and compared to latest valuation $11.6 Billion is low. But looking at the recent investment after Flipkart raised the funding, the actual valuation stayed stable at $11.6 Billion. Similarly, in the previous year, Flipkart was valued at $8.5 Billion by Valic.