It's Amazing: 400 Flipkart Employees Have Become Crorepatis!!!

The high valuation of Flipkart, especially after the latest funding round in which the company raised $1 billion, has made around 400 employees "crorepatis". These employees, as the norm is in technology companies, hold lots of company shares as part of their compensation. The latest funding round gave Flipkart a valuation of around $7 billion.

According to a report in a business daily, "About one-fourth of Flipkart's 7,000 full-time employees own a stake in the company."

"About 400 of the employees who own a stake have now become crorepatis," a person with direct knowledge of the employee stock option scheme at Flipkart, told the newspaper.

Of the 400, around 20 employees who are in senior positions now own stocks worth at least $1 million.

Interestingly, the $7 billion valuation for Flipkart may be on lower side given its reach, ambitions and potential of growth in Indian e-commerce space. The sector is valued at around $10 billion currently. In comparison, the Chinese e-commerce sector is valued at around $230 billion. Over the next few years, Indian e-commerce sector is poised to grow to around $40 billion.

This is something drew attention of a Jefferies analyst . "We believe India is one of the most exciting markets for Internet-related companies (and their investors), as it offers the rare combination of high growth on a large base," Jefferies analyst Arya Sen wrote in a report in February this year.

Flipkart is not yet profitable. But it is one of the biggest e-retailers in India and even though it faces a strong challenge from Amazon, which started its marketplace in India, last year, in the coming years it can hit very high valuations. Once that happen, there are likely to be many more millionaires among the Flipkart employees.

Reference Url: http://indiatoday.intoday.in/story/400-flipkart-employees-have-become-crorepatis-report/1/377156.html