- Earlier in December 2020, Flipkart had announced the partial spin-off of PhonePe, as PhonePe raised $700 million at a $5.5 billion valuation.
- The company has allocated new ESOP for its 2,200 old full-time employees.
- In April 2016, Flipkart had acquired PhonePe for an undisclosed amount.
Bengaluru-based fintech unicorn PhonePe has launched a new Employee Stock Ownership Plan (ESOPs) worth $200 million (or about Rs 1500 crore) to benefit its 2,200 full-time workers.
The announcement comes just two months after it raised Rs 150 crore in mid-December 2020 from Flipkart after surpassing the $5.5 valuation. Earlier in December 2020, Flipkart had announced the partial spin-off of PhonePe after the fintech platform raised $700 million (about Rs 500 crore) at a $5.5 billion valuation, making it the second most valued fintech platform after Paytm ($16 billion).
PhonePe will use the newly launched ESOPs to create incentives for its workers to stay invested in the company’s long-term growth. According to the company, ESOPs worth $5000 (Rs 3.6 lakh) will be allocated for all levels.
As roles become more senior, ESOPs will be a part of the employees’ annual compensation, this will encourage every worker to put the organization’s growth first, the company said in its blog.
“The PhonePe Stock Option Plan is a core component of our compensation philosophy crafted to encourage collaboration, long-term focus, and organization-first thinking.”
Further, the compensation will be rolled out for every employee in the company, including software engineers, customer experience agents, product managers, sales managers, etc, said Manmeet Sandhu, Chief People Officer at PhonePe.
“We are committed to building an internal culture based on the inclusion and an abundance mentality, where every interaction is a positive-sum game,” the company added in its blog.
“As the organization generates more value, it translates into more benefits for every employee. There is more for everyone removing the need for internal competition,” the company added.
“The Stock Option Plan ensures that there is also an opportunity to generate wealth and be participants in PhonePe’s growth story!” the company claimed.
Besides PhonePe, Several other tech startups had launched ESOPs last year, including its rival Paytm, which launched ESOPs worth Rs 250 crore in April 2020 for its high-performing employees to drive more growth in the organization.
With over 25 crore registered users and more than 100 million monthly active users (MAU), PhonePe claims to have surpassed over 1 billion digital payment transactions last month.
To date, The company has raised over $1.4 billion in funding with the major participation from Flipkart and Walmart.