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The bonanza is reminiscent of the times when thousands of employees, among them office assistants, drivers and receptionists, at another Bangalore-based company Infosys hit Esop paydirt. About 400 of the employees who own a stake have now become crorepatis, according to someone with direct knowledge of the employee stock option scheme at Flipkart, which received $1 billion, approximately Rs 6,000 crores, in funding last month, valuing it at $7 billion. About one-fourth of Flipkart’s 7,000 full-time employees own a stake in the company.
At the senior-most level, nearly 20 employees who are at the grade of senior vice-president or above and joined over two years ago are now dollar millionaires, meaning their stock options are worth at least Rs 6 crore on paper. The firm’s stock options get vested over four years. Flipkart declined to provide details for the report. It is the online retail market leader’s valuation jump that has led to this wealth creation.
In 2012, the company was valued at about $850 million when it raised about $150 million. About 400 employees with batch options during online tradesman Flipkart have strike a crorepati kitty since of a surging gratefulness of a online retailer.
The excavation is suggestive of a times when thousands of employees, among them bureau assistants, drivers and receptionists, during another Bangalore-based association Infosys strike Esop paydirt. It is a online sell marketplace leader’s gratefulness burst that has led to this resources creation. In 2012, a association was valued during about $850 million when it lifted about $150 million.
In dual years, Flipkart’s gratefulness has grown 8 times. For a company’s founders, Esops are a unwavering try during formulating resources for their employees. While we are rival when it comes to salaries, Esops offer a event for resources and value creation, explained Sachin Bansal, Flipkart’s co-founder and arch executive. And also added that it’s a long-term prerogative for those who trust in a destiny of Flipkart.
A series of youth employees during Flipkart too reason sizeable interest in a company. This has helped employees like 29-year-old Ambur Iyyappa, a comparison manager of patron operations during Flipkart. I was removing married in 2012 and a buyback authorised me to take caring of my marriage expenses, pronounced a connoisseur of Annamalai University. He was a second non-founder worker to join Flipkart in 2008. It was usually in 2009, a same year that a association lifted a initial turn of appropriation of $1 million (over Rs 6 crore) from Accel Partners, that Flipkart started providing Esops.
Fashion e-tailer Myntra, that was acquired by Flipkart in May, authorised employees to sell shares during a time of a acquisition, according to a chairman with approach trust of a deal. The association declined to endorse this. Myntra provides Esops to all a core employees, numbering about 600, in functions such as record and selling opposite all levels.