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Time of India
5 days ago
- Business
- Time of India
Flipkart to launch $50 million employee stock buyback; over 7,000 staff may benefit
NEW DELHI: Walmart-owned Flipkart has announced a $50 million employee stock buyback plan that will benefit approximately 7,000–7,500 employees. The move comes as the ecommerce major prepares for a potential IPO filing next year. The buyback will allow employees to liquidate up to 5% of the stock options vested between July 6, 2022, and July 5, 2025. The payout will be at $174.32 per option and is expected to be made in August 2025, Flipkart Group CEO Kalyan Krishnamurthy told employees, according to ET. "Our core businesses are performing well, and quick commerce continues to scale at an unprecedented pace." Krishnamurthy wrote to employees. All active employees as of July 5, 2025, will be eligible for the buyback, which is part of Flipkart's broader strategy to reward and retain talent. Krishnamurthy said that if the company meets key targets committed to the board by the end of the year, it may offer another 5% ESOP buyback in early 2026. "The Board has approved a discretionary ESOP liquidity opportunity (under the Flipkart Stock Option Plan 2012) wherein, all active employees as on July 5, 2025 will have the opportunity to liquidate up to 5% of their outstanding options vested in the last three preceding years, i.e. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Redefine Your Future with a Top Online MBA JAIN Online Learn More Undo between July 6, 2022 to July 5, 2025. The liquidation of the options will be at a price of $174.32 per option, and the payment will be made in August 2025," it said. "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. This isn't just about numbers, it's about pushing ourselves to go the extra mile, to innovate boldly and to deliver exceptional value to our customers. Let's rally together, harness our collective energy and make this happen," it added. Flipkart, currently valued at $35 billion, employs around 22,000 people. This latest buyback follows a $700 million ESOP repurchase in 2023, the largest by any Indian internet company to date. Including past buybacks, Flipkart has returned around $1.5 billion to employees through ESOP programs in recent years. The announcement also comes just ahead of Flipkart's flagship Big Billion Days sale, scheduled for October, which is a key revenue driver for the platform. The company is also doubling down on its quick commerce vertical, Flipkart Minutes, which is expected to operate 800 dark stores by the end of 2025. Krishnamurthy highlighted that the company's growth trajectory and commitment to innovation, stating, "this is our way of saying thank you for your unwavering commitment." "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. We must seize them, with agility and a shared commitment to success, forging meaningful growth for all," Krishnamurthy added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
News18
6 days ago
- Business
- News18
IPO-Bound Flipkart To Buy Back $50 Million In ESOP, Benefits Over 7,500 Staff
Last Updated: 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. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
