Here comes the another development from the Snapdeal’s digital payments platform, FreeCharge. According to the media sources, FreeCharge employees are being given a six-month retention bonus. Recently, IndianWeb2 reported that Snapdeal board has given a green signal for FreeCharge sale to Axis Bank for Rs 385 crore. The acquisition marks the end of a two-year long process where numerous buyers came forward to pitch their bid for FreeCharge.
Following the recent announcement, Freecharge employees are now being handed over a letter for the retention bonus. The retention bonus being given to employees is for a period of six months and those choosing to leave the company after a month or so will be only be given part of the bonus.
The firm is taking this step to ensure that employees don’t quit the company while Axis Bank takes over FreeCharge. The retention bonuses will be given to the employees on the basis of their seniority and the time spent in the organisation.
According to the people aware of the retention bonus being handed out the move is linked to employees stock ownership plan (ESOPs) since FreeCharge’s valuation eroded significantly over the last one year.
Jasper Infotech, FreeCharge’s parent company which also owns and operates Snapdeal, had also been on a lookout to raise fresh funds for the payments provider so as to compete head-to-head with the growing popularity of Paytm in the country.
On the other hand, Snapdeal’s largest investor SoftBank has been orchestrating its merger with bigger rival Flipkart. But the process which is still under way with multiple hurdles has restricted the completion of the deal.