Flipkart Announces $50 Million ESOP Buyback For 7,500 Employees Ahead Of IPO

Walmart-owned e-commerce giant Flipkart has rolled out a $50 million employee stock option (ESOP) buyback program, offering partial liquidity to around 7,000–7,500 employees. The initiative, announced on Friday, is expected to benefit staff with vested stock options from the past three years.

In an internal communication shared with employees, Flipkart Group CEO Kalyan Krishnamurthy said all active employees as of July 5 will be allowed to liquidate up to 5 per cent of Esops vested since July 6, 2022. The buyback price is fixed at $174.32 per option, and disbursements are slated for August 2025, according to The Economic Times report.

“If we achieve the key objectives committed to the board by the end of the year, there could be another 5 per cent Esop buyback early next year,” Krishnamurthy noted in the letter, as per the report.

Flipkart Gears Up For IPO

The stock repurchase program comes as Flipkart prepares for a potential IPO, anticipated in 2025. Currently valued at $35 billion, the company is working to strengthen internal morale and retention, especially amid rising competition from fast-growing quick commerce rivals.

This ESOP buyback is Flipkart’s latest effort to create wealth for employees. Its previous buyback in 2023, worth $700 million, was the largest in India’s internet sector, surpassing the $500 million ESOP event during Walmart’s acquisition in 2018. Overall, the company has returned nearly $1.5 billion to employees through various tranches since 2018.

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Quick Commerce And Festive Season Ahead

Krishnamurthy also highlighted strong performance in core operations and growth in its quick commerce arm, Flipkart Minutes, which is targeting 800 dark stores by year-end. The announcement also comes ahead of Flipkart’s flagship sales event, The Big Billion Days, a key driver of its annual revenue.

“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, claims the report.

ESOPs As Retention

Flipkart’s move comes amid rising attrition, with several senior and mid-level executives departing to join competitors, particularly in the quick commerce space. Esops have become a powerful tool for retention, especially in India’s fast-evolving digital economy.

The company joins a growing list of Indian startups, Urban Company, Meesho, Darwinbox, Classplus, Adda247, Even Healthcare, and Mygate, that have carried out ESOP buybacks in the past year, as employee stock liquidity becomes a crucial component of startup compensation strategies.

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