Flipkart employees to get additional shares to compensate for lower valuation

It’s been just few days that Flipkart saw a capital raise at a valuation of $11.6 billion, and now the online retailer has sent out an email to its employees, which says they will be issued additional shares to make up for the lower valuation.

In the last funding round in 2015, Flipkart was valued at $15.2 billion.

As Flipkart was funded at a lower valuation, it has seen a drop in the price of its shares that were issued to the employees with Employee Stock Options (ESOPs) when the company was valued higher. This includes not only Flipkart employees but also of its group companies, Myntra and Jabong along with payments venture PhonePe. About a third of Flipkart's 8,000 employees have ESOPs.

Also read: And now, artificial intelligence will make your Flipkart experience enriching

"As an organisation, Flipkart takes immense pride in being the employer of choice for thousands of professionals-a vaulted status that only comes with a deep, company-wide sense of transparency and fairness. If Flipkart does well, so should you," Group CEO Binny Bansal said in the email.

(Image source Huffington Post)