Flipkart commenced a $700 million “one-time discretionary” cash payout to employees on Friday, the single-largest such compensation in the Indian startup ecosystem.
The Walmart-backed Bengaluru-headquartered startup is compensating employees for the separation of fintech PhonePe from the e-commerce group, a move that devalued Flipkart’s shares.
The two firms completed a full ownership separation late last year in a deal that was structured to allow shareholders in the Singapore entities of both firms to purchase shares directly in PhonePe’s India entity. PhonePe, in addition to separating from Flipkart, has also moved its headquarters to India and raised $850 million in recent quarters as it bulks its warchest and enters new categories, including e-commerce.
In an email to employees earlier Friday, Flipkart Group chief executive Kalyan Krishnamurthy (pictured above) said the “much-awaited compensation will be made today.” A Flipkart spokesperson told TechCrunch that the payout had been made. The company declined to say how many employees are receiving the payout.