Walmart Takes $700 Mn Hit From IPO-Bound PhonePe’s ESOP Compensation

Walmart posted a $700 mn non-cash, share-based compensation expense in its international business tied to ESOPs granted to PhonePe employees. This revaluation charge is linked to PhonePe’s impending IPO: as its implied valuation goes up, accounting rules force Walmart to mark up the cost of the equity compensation. The hit dents reported profits but doesn’t affect cash flow directly, reflecting how equity-based compensation can materially impact parent companies ahead of startups’ listings. (Inc42)