Flipkart Completes Estimated $700 Million Cash Payout Following PhonePe Separation

Flipkart, one of India's leading e-commerce platforms, has made an estimated cash payout of around $700 million. The payout comes after the recent separation of Flipkart's digital payments subsidiary, PhonePe, which witnessed significant growth and success.

The board of directors of Flipkart made a significant announcement, declaring the complete separation of the PhonePe business by divesting its entire shareholding in December 2022. In line with this decision, the board also approved a compensation of $43.67 for each ESOP (Employee Stock Ownership Plan), encompassing vested options for eligible current and former stakeholders, and unvested options exclusively for eligible current stakeholders, as of the record date of December 23, 2022.

According to PTI, the organisation has verified that the reimbursement to employees following the split of PhonePe-which was announced in December 2022-has been properly finished. Additionally, in an internal email to the staff, the CEO of Flipkart expressed appreciation for the outstanding work performed by teams across the business, acknowledging their consistent and dedicated efforts.

The top executive of Flipkart assured the workforce that they will learn more about their particular payouts by the next week.