Flipkart, despite being the largest ecommerce platform in India is bleeding money at the rate of hundreds of crores a year and is yet to make a profit. One of the reasons was/is due to the high salary paid to its employees.
In fiscal 2016, the company paid over Rs 10 Cr. to six of its employees and over a crore to 101 others which let alone adds the company’s remuneration bill to about Rs 300 Cr.
These remunerations include salary, allowances, leave travel allowances, company’s contribution to provident fund, superannuation fund, and gratuity fund, among other things, according to the filing made by Flipkart to the Registrar of Companies (RoC).
In March 2016, when Flipkart’s valuation was cut down by 27% to $11 Bn and the company was finding it difficult to raise fresh funding, even then these payouts were made.
Here are the six of the highest paid people at Flipkart in fiscal 2016 (employees who left during the year):
- Mekin Maheshwari (Chief people officer) – Rs 35.3 Cr.
- Ankit Nagori (Chief business officer) – Rs 21.9 Cr.
- Mukesh Bansal (CEO-commerce platform) – Rs 21.8 Cr.
- Sameer Nigam (Senior VP) – Rs 17.7 Cr.
- Amod Malviya CTO) – Rs 11.7 Cr.
- Rahul Chari (VP-engineering) – Rs 10.1 Cr.
As for Flipkart’s fierce rival Amazon India, they were prudent in comparison. Below are the 10 highest-paid employees at Amazon Seller Services in fiscal 2016, as per the company’s RoC filing:
- Stephen Walter (HR director, India & China) – Rs 4.29 Cr.
- Amit Devendra Agarwal (VP India, country manager) – Rs 3.16 Cr.
- Nitesh Sunder Kripalani (Director, Amazon Video India) – Rs 2.41 Cr.
- Samir Kumar (VP, category management) – Rs 2.27 Cr.
- Mahendra Nerurkar (GM, Junglee.com) – Rs 2.17 Cr.
- Kishore Thota (Sr. manager marketing) – Rs 1.96 Cr.
- Gopal Pillai (Director & general manager, Seller Services) – Rs 1.88 Cr.
- Raghava Rao (Director finance, India) – Rs 1.83 Cr.
- Rajiv M Mehta (Country manager, Kindle, India) – Rs 1.73 Cr.
- Kinjal Choudhary (Director, operations HR India) – Rs 1.69 Cr.
“We do not discuss specifics of employee remuneration as these are confidential but Amazon India remains committed to offering its employees competitive, market-benchmarked salaries with a challenging career path and fulfilling work environment,” an Amazon India spokesperson told Quartz.
Latest estimates suggest that Amazon India lost over Rs 3,572 Cr. in the 2015-16 fiscal year. At the same time, its revenue doubled, going from Rs 1,022 Cr. in 2014-15 to Rs 2,275 Cr. this year.
What’s open to question is whether Flipkart will bounce back and whether Indian ecommerce will be a winner-takes-all business.
The story was first published on Qz India.