New Delhi: India's largest e-commerce site is all set to bless its employees with a Diwali bonus. Flipkart's board has approved a plan to repurchase employee stock option in a move that would be beneficial for almost 6,000 current and former employees.
The share buyback plan marks the largest such programme in the history of Indian startup sector. The plan offers stakeholders the biggest opportunity. Reportedly, the amount reserved for buyback of shares from company's employees is more than $100 million.
This progression comes after the company successfully rasied about $4 billion in financing this year. The finance has been derived from the investors such as SoftBank Corporation and Chinese internet conglomerate Tencent.
Reportedly, employees of subsidiaries such as online fashion retailer Myntra and payments unit PhonePe will also be a part of the repurchase programme.
Under the programme, employees will be allowed to sell a particular quantity of their vested shares. Few senior former employees of Flipkart too could be benefitted by the plan.
Flipkart announced a new round of funding in April, which witnessed its valuation drop by about a third to $11.6 billion compared with $15.2 billion in 2015.
Flipkart had doubled the percentage of white-collar employees in 2016. Such employees were part of its ESOP programme to 35-40 percent.
Earlier the company had 15,000 white collar employees in 2015, which now stands at about 8,000.
