About 400 employees at Flipkart have already become 'crorepatis' thanks to the surging valuation of the eshop online retailer. The bonanza reminds one of Infosys, where the ESOP had enabled employees hit the jackpot about 20 years ago.
About 400 employees who own a stake have now become crorepatis at Flipkart, which got $1 billion (Rs 6,000 crore) in funding last month, putting its worth at $7 billion. About one-fourth of Flipkart's 7,000 full-time employees own a stake. Nearly 20 senior employees who are senior vice-president or above and had joined over two years ago are now dollar millionaires, i.e. their stock options are worth at least Rs 6 crore. The firm's stock options are vested over four years.
The online retailer valuation jump has led to this wealth creation. In just two years, Flipkart's valuation has grown eight times. For the company's founders, Esops are a conscious attempt at creating wealth for their employees. A number of junior employees at Flipkart too have sizeable stake in the company.