Flipkart To Issue additional Stock Options To Employees, Plans To Compensate Them Post Fundraise to whom ESOPs were allotted when its valuation was higher than the one established in the latest funding round.
Flipkart recently announced that it had raised $1.4 billion investment from global technology firms, including Tencent, Microsoft and eBay.
The current round valued Flipkart at $11.6 billion, as against the $15.2 billion valuation in July 2015. The drop in valuation translates to a lower stock price, and would have essentially meant a notional loss for employees who were allotted ESOPs at higher prices.
In the email to employees who are part of the ESOP (employee stock option plan) programmes across the Flipkart group, which includes fashion e-tailers Myntra and Jabong, and payment facility PhonePe, Group CEO Binny Bansal said the differential grant was being made so that the total dollar value of options allotted to an employee remains unchanged.