Flipkart announced a $50 million employee stock buyback program, offering liquidity to approximately 7,000–7,500 employees as it prepares for a potential IPO.
The Walmart-owned e-commerce giant, last valued at $35 billion, will allow employees to sell up to 5% of the stock options vested over the past three years. In a note to staff, Flipkart Group CEO Kalyan Krishnamurthy stated that all active employees as of July 5 can liquidate up to 5% of their vested options since July 6, 2022. The company has set the buyback price at $174.32 per option, with payouts scheduled for August 2025.
If Flipkart meets the key goals committed to its board by the end of this year, the company may initiate another 5% ESOP buyback early next year, CEO Kalyan Krishnamurthy wrote in his note to employees. Flipkart currently employs around 22,000 people.
The announcement comes just ahead of The Big Billion Days, Flipkart’s flagship annual sale event held in October, which contributes significantly to its yearly revenue.
Flipkart last carried out a major ESOP buyback in 2023, repurchasing stock options worth $700 million from current and former employees—marking the largest ESOP buyback ever by an Indian internet company. That surpassed the $500 million buyback the company conducted when Walmart acquired it in 2018.
Over the last decade, Flipkart has emerged as one of the biggest wealth creators in India’s internet economy, conducting ESOP buybacks totaling $1.5 billion across several tranches in the past six to seven years.
Companies use ESOPs as a key retention strategy, and Flipkart’s latest payout comes amid a wave of senior and mid-level executive departures—many of whom have moved to competing firms, particularly in the fast-growing quick commerce sector.
“Our core businesses are performing well, and quick commerce continues to scale at an unprecedented pace…,” Krishnamurthy wrote to employees.
Flipkart’s quick commerce unit, Minutes, is expected to have 800 dark stores by the end of this year.
“Let’s always remember that in an industry as dynamic and competitive as ours, past successes are a foundation for future achievements. The opportunities in our country are immense,” Krishnamurthy wrote in his letter.
Flipkart is targeting to file for its initial public offering (IPO) next year, marking a key milestone in its growth journey.
Over the past year, several new-age startups have also completed ESOP buybacks as part of their employee wealth creation strategies. These include Darwinbox, a SaaS company; Urban Company, which is also preparing for an IPO; Mygate, a society management platform; Meesho, an e-commerce player; edtech firms Classplus and Adda247; and Even Healthcare, a managed healthcare provider.
