Indian electronic e-commerce firm Flipkart’s board has approved a plan to repurchase employee stock options. With this plan, the e-commerce firm will benefit nearly 6000 current and former employees. The share buyback plan will offer stakeholders opportunity to liquidate their holdings in the country’s most valuable startup.
Myntra and PhonePe to be Part of Repurchase Plan
This development has come after Flipkart raised a total sum of $4 billion from Softbank Corporation and Tencent. Besides Flipkart, online fashion retailer Myntra and payments unit PhonePe will also be part of repurchase program which is expected to be close by December.
Employees will be allowed to sell a certain percentage of their vested shares under this programme, and few senior employees can also make “tens of crores”, people aware of the plan told ET.
Employee wealth made by home-developed online organizations in India is worth more than $1.5 billion since 2011. It might have touched the 18,000-individuals check, as per a gauge by ability procurement firm CareerNet. 47 employees of mobile wallet and online payments player Paytm sold shares worth about 100 crore to both internal and external buyers.
Besides Flipkart and Paytm, other players like Ola, InMobi, MakeMy Trip and Info Edge have also generated liquidity for their employees.