BENGALURU, INDIA — Walmart-owned e-commerce giant Flipkart has announced a substantial new Employee Stock Option Plan (ESOP) liquidity program worth $50 million (approximately ₹430 crore), offering a significant financial boon to approximately 7,000 to 7,500 eligible employees. The move comes as the company intensifies its preparations for a potential Initial Public Offering (IPO) filing expected in 2026.
According to an internal note shared by Flipkart Group CEO Kalyan Krishnamurthy, the discretionary buyback, conducted under the Flipkart Stock Option Plan 2012, will allow active employees as of July 5, 2025, to liquidate up to 5% of their outstanding options. These options must have vested between July 6, 2022, and July 5, 2025. The buyback price has been set at $174.32 per option, with payouts expected to be disbursed in August 2025.
This latest ESOP liquidity event underscores Flipkart's strategy to attract, reward, and retain top talent in India's highly competitive e-commerce and quick commerce landscape. ESOPs have long been a crucial tool for wealth creation for employees in fast-growing tech companies. This $50 million buyback follows Flipkart's record-setting $700 million ESOP repurchase in 2023, which was considered the largest by any Indian internet company to date, and a $500 million payout when Walmart acquired the company in 2018. In total, Flipkart has now returned around $1.5 billion to employees through various ESOP programs over the past six to seven years.
In his communication to employees, Krishnamurthy also hinted at the possibility of another ESOP liquidity event early next year. "Looking ahead, we remain committed to acknowledging your contributions, and if we achieve key goals committed to the Board by the end of the year, we will unlock another 5% ESOP Liquidity event early next year," he stated. This incentive aims to further motivate employees as the company navigates aggressive growth targets and prepares for a public listing.
Flipkart, currently valued at around $35 billion, is reportedly targeting a valuation in the range of $60 billion to $70 billion for its anticipated IPO. In preparation for this, the company's board has already approved the process to transition its holding structure from Singapore back to India, a move expected to streamline regulatory compliance for a domestic listing.
The announcement comes just ahead of Flipkart's flagship annual sale event, "The Big Billion Days," typically held in October, which is a major revenue driver for the platform. Krishnamurthy highlighted the strong performance of Flipkart's core businesses and the unprecedented scaling of its quick commerce vertical, Flipkart Minutes, which is expected to operate 800 dark stores by the end of 2025.
The ESOP buyback also reflects a broader trend among Indian new-age companies to provide liquidity to employees, even prior to an IPO, as a means of talent retention in a dynamic market. Companies like Darwinbox, Urban Company, Meesho, and Classplus have also conducted similar buyback programs in recent years. This strategic move by Flipkart solidifies its position as a significant wealth creator in the Indian internet economy and reinforces its commitment to its workforce as it charts its path towards becoming a publicly listed entity.
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