Flipkart, ShareChat, to buy back ESOPs

While Flipkart may buy back employee stocks worth $125 million, ShareChat will buy back stocks worth $19.1 million

0
999

Flipkart, the e-commerce company, is thinking of buying back employee stock options (ESOPs) worth almost $125 million, while it works on raising funds.

This isn’t the first time the Company will be repurchasing ESOPs. In 2019-20, Flipkart India had bought back over 48,000 employee stock options, while the year before that, it had bought back 1,87,974. It had granted 2,04,940 options during 2019-20, compared to 2,94,187 previously.

Meanwhile, Mohalla Tech, the parent company of social-media platform, ShareChat ,and short video app Moj, announced its intention to buy back employee stocks worth $19.1 million. Only a few months ago, the Company had managed to raised $502 million at a valuation of $2.1 billion, entering the country’s startup unicorn club. Almost 200 current and ex employees of the Bengaluru-based startup who hold vested options will be able to participate in this scheme.

As per reports in the media, Walmart-owned Flipkart is in talks with investors to raise funds to the tune of about $3 billion, valuing the Company at $35 billion.

About three years ago, when Walmart had acquired Flipkart, it had kept aside about $500 million to buy back ESOPs from the employees of Flipkart. As a result, some of the employees in its 15,000-strong workforce had come into a lot of money.

According to the Times of India, Canada Pension Plan Investment Board (CPPIB), Abu Dhabi Investment Authority (ADIA) and Japan’s S SoftBank are considering becoming investors, putting in about $2 billion in the Group. Softbank may actually invest around $500 million.

Comment on the Article

Please enter your comment!
Please enter your name here

13 − four =