IPO-Bound Flipkart To Buy Back $50 Million In ESOP, Benefits Over 7,500 Staff
Flipkart announced a $50 million employee stock buyback for over 7500 employees ahead of Diwali. CEO Kalyan Krishnamurthy praised the team's achievements and future goals.
Walmart-owned Flipkart announced on Friday to reward its employees ahead of the Diwali by purchasing a $50 million employee stocks in a buyback scheme, benefitting over 7500 e-commerce employees. Flipkart is gearing up to launch its IPO very soon.
In a note addressed to employees, Kalyan Krishnamurthy, CEO of Flipkart, highlighted the company's achievements in the first half of the year, particularly in quick commerce and AI-driven customer experience innovations targeting Gen Z consumers. Praising the team's agility and execution, he expressed pride in their relentless drive and passion.
As part of the initiative, Flipkart's board has approved a special liquidity event under the Flipkart Stock Option Plan 2012. All active employees as of July 5, 2025, will be allowed to liquidate up to 5% of their vested stock options from the past three years (July 6, 2022 to July 5, 2025) at a rate of $174.32 per option. The payouts are scheduled for August 2025. This move aims to let employees share in the company's value creation and reward their efforts in driving success.
Kalyan further added that if key goals are met by the end of the year, another 5% ESOP liquidity event may be unlocked in early 2026. This, he said, is not just a financial gesture but also a recognition of innovation, commitment, and the drive to create exceptional value for customers.
Closing the message, Kalyan urged the team to continue striving for excellence, reminding them that in a fast-paced industry, past wins are stepping stones for future growth. He emphasized the immense opportunities in India and called for collective effort to harness them for meaningful success.
Walmart and other Flipkart board members have directed CEO Kalyan Krishnamurthy to reduce the company's monthly cash burn by 50%, bringing it down from $40 million to $20 million.
In 2018, Walmart acquired a controlling stake of 77% in the Indian e-commerce company Flipkart for $16 billion.
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