Online e-commerce giant Flipkart has paid $700 million as part of the one-time payout for Employee Stock Ownership Plan (ESOP) from the separation of PhonePe and Flipkart.

The payout comes after an announcement made by the board of directors at the company on April 21. A number of former and current employees of Flipkart will be receiving the payout on Friday.

In a letter to the employees addressed by CEO of Flipkart group, Kalyan Krishnamurthy said, ”Further to the communication made on April 21, 2023, regarding this payout, I am delighted to inform you that the much-awaited compensation will be made today, July 14, 2023.”

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“I want to thank all the teams for their consistent and dedicated efforts in prioritising impact and value. It is your commitment to our purpose that continues to drive success for Flipkart,” it added.

The payout values of each ESOP is at $43.67, which includes only vested shares for eligible former employees. The eligible current employees will receive compensation for both vested and unvested options.

“We have exciting times ahead, and as we continue to grow across businesses, I look forward to your continued dedication and determination to bring about the future that we envision and scale new heights together,” Krishnamurthy’s email added.

Seperation from PhonePe

In December, Flipkart completed its separation from its payments unit PhonePe, after which PhonePe became a fully India-domiciled company. As part of this transaction, existing Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, have purchased shares directly in PhonePe India.

Also read: Flipkart employees get $700 million cash payout after PhonePe separation

Retail giant Walmart continues to be a major shareholder in both PhonePe and Flipkart, post the demerger. PhonePe was valued at at $12 billion as of February 2023.

Started in 2007, the Flipkart group today has a footprint in several industries including e-commerce marketplace-, Myntra, Cleartrip, Flipkart Health+, and more. The PhonePe group was acquired by the Flipkart group in 2016.