Flipkart, India’s biggest ecommerce company, successfully completed the repurchase of Employee stock options (ESOPs,) for $100 million. More than 3,000 current and former employees of Flipkart, Myntra, Jabong and PhonePe took part in the stock repurchase program for the fourth time.
The ecommerce firm provided all the eligible, current and former employees of Flipkart and group companies an opportunity t0 sell a part of their vested ESOP units to the company. This is the fourth time in five years the company gave all the ESOP holders this opportunity to encash their vested stock options.
In an emailed statement, Flipkart said this repurchase program will heavily benefit the employees who have been with the company since 2010. The official statement further added, “Flipkart employees get a threshold period of one year, the stock options start vesting on monthly basis over a four year period after the first year of employment. The decision is welcomed by Flipkart employees across company’s locations in India.”
Speaking about the buyback program, Sachin Bansal, the Chairman of Flipkart and Binny Bansal, Group CEO said, “Employees are our biggest source of strength, without whom Flipkart couldn’t have built the ecommerce industry in India. As an organization, we believe they should be equal partners in Flipkart’s success. This ESOP repurchase programme is an extension of that culture and a token of thanks for the dedication and hard work they have put in over the years. We’re delighted to be setting the benchmark on this important parameter, not only in the startup industry but the wider Indian private sector as well.”
Recently, in a deal valuing Flipkart at $ 10 billion, Japan based venture capital firm SoftBank offered to buy Flipkart stock from investors and former and existing employees of Flipkart. In December this year, the company reported a 43% rise in Gross Merchandise Value (GMV) for six months ended 30 September 2017. The mutual fund investor Morgan Stanley also marked up the valuation of the ecommerce behemoth to $ 9.36 billion from $ 7 billion for the September quarter.
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