Flipkart and Myntra employees have started receiving cash payouts worth $700 million reported Moneycontrol. 19,000 employees will be paid $700 million starting from today (14th July, 2023) revealed Flipkart.
The employees who are no longer working in Flipkart have also received their payouts earlier today, reported Moneycontrol citing its sources. The value of each share is around $43, mentioned Flipkart. The cash payout is a means to compensate the current as well as the former employees for the loss in share value that happened due to separation of Flipkart and payment platform PhonePe which was its subsidiary.
“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. You will receive the details of your individual payout by the following week, and I thank the team that has worked diligently and tirelessly to bring this endeavor to fruition,” said CEO of Flipkart, Kalyan Krishnamurthy.
Walmart which acquired a major stake of Flipkart in 2018 is responsible to facilitate the payout. The cash payout is expected to be the last buyback programme by Flipkart ahead of its much-anticipated initial public offering (IPO) in 2023.
For those who are unknown, Flipkart had acquired PhonePe for a value of $20 million in 2016. PhonePe continued to be the subsidiary of Flipkart till December 2022. However, both the firms announced their separation later. On the other hand, Walmart still continues to be the parent company of both Flipkart as well as PhonePe. The major shareholder in both companies happens to be Walmart.