Flipkart returns to salary increments, hiring spree after two tepid years

Mint

2 days ago

Bengaluru: Online marketplace Flipkart Internet Pvt. Ltd is doling out increments of 8-15% this year even as it gears up to hire as many as 5,000 employees across its business segments, including its 10-month-old quick-commerce service Flipkart Minutes.
Last year, the Walmart-backed e-commerce giant opted for merit-based payouts handed out in April and October instead of salary increments that are staggered across an entire year. Also, several senior employees were denied a pay hike for a second consecutive year as Flipkart sought to cut costs and raise efficiency.
This year, the Bengaluru-based digital marketplace is on an expansion drive, particularly in the quick-commerce space, where it's rushing to catch up with younger but more established competitors such as Blinkit and Zepto.
The salary increase projected for India's e-commerce industry this year is 9.3%, up from an average increase of 9.1% in 2024, according to consulting firm Aon's Annual Salary Increase and Turnover Survey 2024-25. The industry's highest increment in the past 7-8 years was in 2022, when salary increases averaged 10.6%, according to Aon.
'This time the range was wide and the reason (for the salary increments) is meritocracy," Seema Nair, chief human resources officer at Flipkart, told Mint in an interview. 'So for somebody who's either been in the top two performance ratings or somebody who got promoted in the last cycle, the ratings have been even more rich."
Flipkart has also handed out promotions to about 20% of its employees, in line with last year, Nair said. 'Additionally, our stock option allocation exercise has been extended among a much larger employee pool this year."
Across industries, appraisals and salary increments this year are projected to be worse than in 2024 as slowing corporate earnings and lethargic economic growth have constrained budgets, pushing companies to become more tightfisted.
'Talent poaching and attrition are making parts of the e-commerce workforce pretty fragile right now," said Kartik Narayan, chief executive of Teamlease Staffing. 'Companies are handing out 10%+ hikes—sometimes double for top performers—just to hold on to key talent. With 80% of firms struggling to hire, it's less about rewards and more about retaining your critical talent in tech and market facing roles."
Also read | Flipkart on track to open 800 dark stores by December as quick commerce booms
Flipkart's hiring rush
Flipkart plans to hire 5,000 employees in 2025-26 across business categories, including central and regional roles in supply chain, travel booking platform Cleartrip, as well as technology roles in product, design and engineering. The company will also place special emphasis on artificial intelligence roles, Nair said.
A sizable portion of the hiring will be centred around Flipkart's quick-commerce operation, Minutes, with a focus on roles in hyperlocal commerce and fashion, Nair added. Flipkart had about 22,000 employees last year.
'Flipkart's plan to hire 5,000 people in 2025 (is a) strong signal they're doubling down on quick-commerce and fintech. With 800+ dark stores coming up, this could really shake things up for established players... others might have to rethink their hiring and retention game," said Narayan of Teamlease Staffing.
Flipkart ventured into quick-commerce—which promises delivery of grocery and other essentials within minutes—in August last year to keep up with competition from players like Zepto, Zomato-owned Blinkit, and Swiggy Instamart.
Flipkart's hiring plans come as other startups that have been chasing profitability or aiming for a public market listing appear to have gone slow on their hiring, both to save money and figure out how artificial intelligence will change their workflows.
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