Walmart-owned Flipkart to buyback employee stock options worth INR 600 crore
According to sources, Walmart-owned Flipkart will buy back employee stock options worth approximately Rs 600 crore. Earlier in the day, Flipkart announced that it had raised $3.6 billion (approximately Rs 26,805.6 crore) in funding from a group of investors, valuing the e-commerce giant at $37.6 billion (about Rs 2.79 lakh crore).
it has always been our endeavour to provide our employees with an opportunity to liquidate their vested options regularly. This year, we are pleased to announce a buyback of 5 per cent of the past three years' vested options. With this landmark event for us, I am happy to share that we are offering our employees an additional buyback of 5 per cent of all vested options as we stay committed to wealth creation for you," says, Flipkart Group Chief Executive Officer Kalyan Krishnamurthy.
According to sources, the employee stock option buyback will cost around Rs 600 crore, and employees will be able to liquidate up to 10% of their vested shares depending on their holding pattern.
They also stated that the buyback is expected to benefit approximately 6,000 people.
The company confirmed the development but did not provide any additional information.
Employees are given options based on their length of service, performance, and contributions to the company.
Krishnamurthy said the fund infusion received by Flipkart is "one of the most significant investments in the digital commerce ecosystem in India, reflecting the opportunity for digital commerce in India and the confidence of investors in our ability to address this potential".
"As we continue to focus on meeting the needs of our customers, we will make several investments across people, technology, supply chain and infrastructure, and continue to strengthen and build on key categories and business opportunities," he added.
Krishnamurthy emphasised that the company must maintain its commitment to its existing customers while also introducing the value proposition of digital commerce to the next 200 million Indians while also innovating to create value and experiences for them.
Flipkart Group has raised $3.6 billion in funding led by Singapore's sovereign wealth fund GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart, valued at $37.6 billion.
Sovereign funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad, as well as marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global, have all participated in the current funding round.
SoftBank is re-entering Flipkart's capital structure with this transaction. When Walmart purchased a 77% stake in Flipkart for $16 billion in 2018, SoftBank sold its approximately 20% stake.
Flipkart, Myntra, and Ekart are all part of the Flipkart Group, which was founded in 2007. (logistics and supply chain arm). In addition, the Group owns a majority stake in the digital payment platform PhonePe.
it has always been our endeavour to provide our employees with an opportunity to liquidate their vested options regularly. This year, we are pleased to announce a buyback of 5 per cent of the past three years' vested options. With this landmark event for us, I am happy to share that we are offering our employees an additional buyback of 5 per cent of all vested options as we stay committed to wealth creation for you," says, Flipkart Group Chief Executive Officer Kalyan Krishnamurthy.
According to sources, the employee stock option buyback will cost around Rs 600 crore, and employees will be able to liquidate up to 10% of their vested shares depending on their holding pattern.
They also stated that the buyback is expected to benefit approximately 6,000 people.
The company confirmed the development but did not provide any additional information.
Employees are given options based on their length of service, performance, and contributions to the company.
Krishnamurthy said the fund infusion received by Flipkart is "one of the most significant investments in the digital commerce ecosystem in India, reflecting the opportunity for digital commerce in India and the confidence of investors in our ability to address this potential".
"As we continue to focus on meeting the needs of our customers, we will make several investments across people, technology, supply chain and infrastructure, and continue to strengthen and build on key categories and business opportunities," he added.
Krishnamurthy emphasised that the company must maintain its commitment to its existing customers while also introducing the value proposition of digital commerce to the next 200 million Indians while also innovating to create value and experiences for them.
Flipkart Group has raised $3.6 billion in funding led by Singapore's sovereign wealth fund GIC, Canada Pension Plan Investment Board (CPP Investments), SoftBank Vision Fund 2 and Walmart, valued at $37.6 billion.
Sovereign funds DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad, as well as marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global, have all participated in the current funding round.
SoftBank is re-entering Flipkart's capital structure with this transaction. When Walmart purchased a 77% stake in Flipkart for $16 billion in 2018, SoftBank sold its approximately 20% stake.
Flipkart, Myntra, and Ekart are all part of the Flipkart Group, which was founded in 2007. (logistics and supply chain arm). In addition, the Group owns a majority stake in the digital payment platform PhonePe.
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