Ecommerce major Flipkart is rolling out its second discretionary Employee Stock Option Plan (ESOP) liquidity event, allowing eligible employees to liquidate up to five per cent of the stock options vested over the past three years at Rs 713.4 per option, according to an internal email sent to employees.
The initiative follows approval from the company's board and comes as the Walmart-owned ecommerce firm continues to report business growth despite a challenging macroeconomic environment. The development also follows Flipkart's recent redomiciling to India as it prepares for a future public listing.
In the internal email, Group Chief Executive Officer Kalyan Krishnamurthy said the board had approved the second discretionary ESOP liquidity event after reviewing the company's progress against the goals outlined when it introduced a two-part ESOP liquidity programme last year.
"As you may recall, last year we had shared that there would be two liquidity events, with the second being subject to us meeting certain goals," Krishnamurthy wrote. "After reviewing the progress we have made together, the Board has approved this second discretionary ESOP liquidity event."
Under the Flipkart Stock Option Plan 2026, all active employees as of 15 July 2026 will be eligible to liquidate up to five per cent of their outstanding stock options vested between 16 July 2023 and 15 July 2026. The liquidity price has been fixed at Rs 713.4 per option, with payouts scheduled for August.
The latest exercise completes Flipkart's USD 50 million ESOP liquidity programme introduced in July last year, under which more than 7,000 employees were eligible to liquidate up to five per cent of their vested stock options.
Flipkart has periodically offered liquidity to employees through ESOP buyback programmes. Its largest such exercise came in 2023, when the Walmart-owned ecommerce company undertook a USD 700 million ESOP payout linked to the separation of PhonePe. The programme benefited around 19,000 current and former employees and remains one of the largest employee wealth creation initiatives in India's startup ecosystem.
The latest liquidity event also reflects a broader trend among mature startups towards providing greater liquidity opportunities for employees.
According to data from equity management platform Qapita, startup ESOP liquidity programmes totalled USD 423 million across 27 programmes in FY26, up 70 per cent from USD 248 million across 31 programmes in the previous financial year. The increase was driven by larger payouts from a smaller pool of late-stage startups, contributing to higher employee wealth creation.
According to media reports, Flipkart has also deferred its initial public offering (IPO) plans. The company recently shifted its domicile to India, a move widely seen as part of its preparations for a future domestic listing. |
