Flipkart makes $700 million payout to workers following PhonePe cut up



Flipkart commenced a $700 million “one-time discretionary” money payout to workers on Friday, the single-largest such compensation within the Indian startup ecosystem.

The Walmart-backed Bengaluru-headquartered startup is compensating workers for the separation of fintech PhonePe from the e-commerce group, a transfer that devalued Flipkart’s shares.

The 2 companies accomplished a full possession separation late final 12 months in a deal that was structured to permit shareholders within the Singapore entities of each companies to buy shares instantly in PhonePe’s India entity. PhonePe, along with separating from Flipkart, has additionally moved its headquarters to India and raised $850 million in latest quarters because it bulks its warchest and enters new classes, together with e-commerce.

In an electronic mail to workers earlier Friday, Flipkart Group chief govt Kalyan Krishnamurthy mentioned the “much-awaited compensation might be made at this time.” He added: “Now we have thrilling instances forward, and as we proceed to develop throughout companies, I sit up for your continued dedication and willpower to carry concerning the future that we envision and scale new heights collectively.”

A Flipkart spokesperson instructed TechCrunch that the payout had been made. The corporate declined to say what number of workers are receiving the payout, however native media estimates the determine to be over 18,000.

The payout comes at a time when Flipkart has contemplated one other spherical of financing from buyers. The agency, which competes towards Amazon in India, raised $3.6 billion at a valuation of $37.6 billion in mid-2021. Flipkart, which additionally counts Tiger World and SoftBank amongst its backers, has already exhausted most of that capital, in response to an individual accustomed to the matter.