Post the Walmart Inc., and Flipkart deal, a number of Flipkart’s former employees have given public statements saying they were treated unfairly post the deal. While current Flipkart employees are able to cash out all their holdings in the company over the next two years, former employees are only able to cash in around 30% of their total holdings in the Bengaluru based e commerce platform.
While SoftBank is still looking at keeping its investments in Flipkart post the deal, Flipkart seems to be gearing up for further developments post the Walmart Flipkart acquisition. According to reports, the email read, “Over 30% of the vested options can be liquidated on or about the date of the closing of the proposed transaction. The liquidation of options would be at a price reflective of the transaction price, in the range of $125-$129 per option.”
Flipkart is said to have kept aside around $ 500 million for what is regarded as the largest shares repurchase system in the Indian startup eco system. The repurchase will go through once the board of directors approves the proposal and confirms the deal with its stamp of approval.
According to the new deal, existing employees can also liquidate their stock options in three installments. The first installments. The first part can be done on the date of the closing of the Walmart date, the second part, (25%) can be a year later; while the remaining can be done in the third year. The e commerce giant plans on closing the deals along with getting approvals for the regulations over the next 60 to 90 days.
With Walmart’s acquisiton of Flipkart, the Bengaluru based platform is all set to take on the global world. With the company working at ensuring fair treatment of former and existing companies, Flipkart is ready to emerge as one of the largest e commerce platforms the country has seen to date.
