Flipkart, an e-commerce giant has announced a "one-time discretionary" cash payment of $700 million to its employees, post following its separation from fintech firm PhonePe. The payment was confirmed by Flipkart's CEO, Kalyan Krishnamurthy, in an email sent to the company's employees. Krishnamurthy expressed his gratitude for their dedication and emphasized the exciting future that lies ahead for Flipkart. The separation between PhonePe and Flipkart was finalized in December of the previous year. As part of the deal, Singapore shareholders were given the opportunity to purchase shares directly in PhonePe's India entity. PhonePe, which had been acquired by Flipkart in 2016, also relocated its headquarters to India.
In subsequent months, PhonePe secured significant funding to support its growth. In January, the company raised $350 million in funding from General Atlantic, a prominent global growth equity firm. This funding round valued PhonePe at $12 billion. Following that, in February, PhonePe raised an additional $100 million in primary capital from investors including Ribbit Capital, Tiger Global, and TVS Capital Funds.
The $700 million cash payment to Flipkart employees marks a significant gesture from the company as it continues to expand and diversify its business ventures. Flipkart has been a dominant player in the Indian e-commerce market and has been making strategic moves to strengthen its position further. The payment serves as recognition for the efforts of its employees and their contribution to Flipkart's success.
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With the completion of the payment, Flipkart aims to motivate its workforce and foster a sense of unity as it embarks on new endeavours. The company is focused on scaling new heights and realizing its vision for the future. Flipkart, under the leadership of CEO Kalyan Krishnamurthy, is poised for continued growth and remains committed to delivering exceptional value to its customers.
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Overall, the separation from PhonePe and the subsequent cash payment demonstrates Flipkart's commitment to rewarding its employees and ensuring their continued dedication to achieving the company's ambitious goals.
Inputs from IANS
