Walmart’s buyout of Flipkart will make a host of former and current employees with shares in the latter rich, and quite a few will become dollar millionaires. Some 3,000 or more employees, current and former, are said to be holding shares. The company has a total strength of about 10,000.
At the employee town hall on Wednesday, there was a big cheer when Flipkart co-founder and group CEO Binny Bansal announced a 100% buyback of vested ESOPs (employee stock options). Sources told TOI that the buyback could be at around $150 (Rs 10,000) a share.
Among those turning dollar millionaires are said to be Sameer Nigam, CEO and founder of PhonePe, the payment arm of Flipkart, Amod Malviya, former chief technology officer, Sujeet Kumar, former president of operations, Vaibform Udaan. Former business finance chief, Ankit Nagori started healthcare platform Curefit, together with Myntra founder Mukesh Bansal.
Mekin Maheshwari, former chief people officer, recently started Udhyam Learning, Founhav Gupta, former chief business officer, and Ananth Narayanan, CEO of Myntra and Jabong.
Malviya, Kumar and Gupta went on to a found trading platform, which works on developing entrepreneurial mindsets amongst youth from difficult backgrounds.
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Flipkart was quite liberal in granting stock options to employees. But it would still not be able to rival Infosys, which is said to have created 20,000 rupee-millionaires and 500 dollar-millionaires in the 1990s and 2000s.
“Infosys grew organically, taking in less capital and creating sustainable cash flows. Flipkart has consumed a huge amount of capital, which has gone into building the business and funding losses. But they need to be congratulated for creating value,” TV Mohandas Pai, a former board member at Infosys, said.
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