Flipkart offers $50 million stock buyback to employees ahead of planned IPO

Walmart-owned Flipkart is offering a $50 million stock buyback to employees, signaling confidence in its upcoming IPO and promising an additional liquidity event if performance targets are met

Flipkart is allowing employees to cash out stock options worth millions of dollars.

 

This is a liquidity event that highlights the e-commerce giant's confidence amid intensifying competition with Amazon and quick-commerce (qcom) rivals.

 

The Walmart-owned company will let all active employees sell up to 5 per cent of stock options vested over the past three years at $174.32 per share, with payments due in August. This was revealed by an internal memo from chief executive Kalyan Krishnamurthy, a copy of which was reviewed by Business Standard.

 

The employee stock options (ESOP) buyback is valued at $50 million, with about 7,000 employees expected to benefit from the liquidity programme.

 

 

The firm is currently valued at about $36 billion. It has a total of about 22,000 employees.

 

Flipkart, based and operating in India, has shared its intention to relocate its holding company from Singapore to India.

 

It is preparing for an initial public offering (IPO) expected within the next 12-15 months, with a valuation target of $60-70 billion, according to sources. 

 

The programme allows employees hired by July 5 to sell options vested between July 6, 2022, and July 5, 2025, according to the memo. 

 

“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 per cent ESOP liquidity early next year,” said Krishnamurthy in the letter.

 

Krishnamurthy added, “This isn't just about numbers — it's about pushing ourselves to go the extra mile, innovate boldly and deliver exceptional value to our customers.”

 

A Flipkart spokesperson confirmed the development to Business Standard.  

 

Flipkart executed an ESOP buyback worth approximately $50 million in 2020 and a much larger buyback in 2021, worth around $80.5 million. 

 

In 2023, Flipkart distributed a cash payout estimated at $700 million to employees and former staff, following its corporate separation from fintech firm PhonePe. The payout was intended to compensate for the reduction in equity value stemming from the demerger.

 

In 2025, a group of startups — including Darwinbox, Rapido, Univest, Deserve, and Even Healthcare — rolled out ESOP buybacks and liquidity programmes, totalling around $67 million, according to Entrackr.

 

A year earlier, over 20 startups collectively executed similar initiatives valued at around $200 million.

 

Strategic focus

 

In the letter, Krishnamurthy emphasised strong performance across core businesses and rapid gains in emerging segments, such as qcom and artificial intelligence (AI)-driven consumer experiences.

 

“We have had an energetic first half, and it is heartening to see your agility and relentless execution,” he wrote.

 

He noted that the company’s traditional e-commerce operations remain solid, while new verticals — particularly quick commerce — are expanding rapidly. 

 

“Quick commerce continues to scale at an unprecedented pace, delivering unparalleled convenience to our customers,” he said.

 

A key strategic focus is capturing Gen Z consumers through next-generation shopping experiences. This includes initiatives to reimagine customer experience for Gen Z through video-led, trend-first and AI-driven conversational commerce. “We are breaking new ground, positioning us as innovators in a rapidly evolving market,” he said.

 

Krishnamurthy called on employees to remain forward-looking amid a rapidly evolving retail landscape, emphasising the need for agility and collective ambition.

 

“Let's always remember that in an industry as dynamic and competitive as ours, past successes are a foundation for future achievements,” he said.

 

Pointing to India’s growth potential, Krishnamurthy added, “The opportunities in our country are immense. We must seize them with agility and a shared commitment to success, forging meaningful growth for all.”