Flipkart’s Former CXOs Seek ‘Fair And Equitable’ Treatment In ESOPs Amid IPO Uncertainty

A group of former senior executives of Flipkart has approached parent company Walmart seeking equal treatment for vested employee stock options, as uncertainty over the e-commerce company’s initial public offering (IPO) continues to weigh on employee liquidity.

At least eight former Flipkart CXOs and senior executives have written to Walmart chairman Gregory B Penner and other senior executives, seeking a liquidity opportunity for eligible former employees who continue to hold vested options, as per a report by Moneycontrol.

The October 1 letter includes former Myntra CEO Mukesh Bansal, ex-Flipkart chief business officer Ankit Nagori, former chief technology officers Amod Malviya and Ravi Garikipati, former chief people officer Mekin Maheshwari and former vice-president Anuj Chowdhary, the report said.

The former executives said their request was not for preferential treatment but for access to the same opportunity to realise equity that had been earned during their time at Flipkart, it added.

“We are not contesting the business decision, we welcome the fact that current employees are being given an opportunity to realise the value of their holdings,” the letter said, as per Moneycontrol.

“However, it is difficult to understand why former employees who continue to hold vested options should be excluded solely because they are no longer employed by the company,” it added.

More than 30,000 current and former Flipkart employees could collectively receive about $4 billion (₹38,000 crore) through ESOP buybacks yet to be facilitated by Walmart. Former employees account for roughly half of that amount, while current employees could receive around $2 billion, per the Moneycontrol report.

The former executives said many of their options were granted between 2008 and 2016 and have been held for more than a decade.

“Many of us received these options 10-15 years ago, when Flipkart was still in its formative and growth stages,” the letter said. “We contributed our time, effort, expertise, and commitment to building the business and creating the value that exists today.”

“This is not merely a request for goodwill,” they said in the letter, as per the report.

IPO Uncertainty Adds To Employee Concerns

The appeal comes amid continuing uncertainty over Flipkart’s IPO plans. Walmart and Flipkart have maintained that a listing remains part of the company’s strategic roadmap and will happen “when the timing is right”, without specifying a timeline.

According to Moneycontrol, Walmart had asked Flipkart CEO Kalyan Krishnamurthy to prioritise profitability before pursuing public-market ambitions.

Flipkart had also reportedly explored a private funding round of about $2 billion, though those discussions did not materialise.

In the letter, the former executives contrasted their position with that of investors and founders who have already had opportunities to realise their holdings.

“We fully recognise and respect the rights of investors and the returns generated for them by Walmart,” they wrote, as per Moneycontrol.

“It would therefore be difficult to reconcile a situation in which: early investors and both co-founders Sachin Bansal and Binny Bansal have received their exit; current employees have been provided multiple liquidity opportunities over the years; but former employees who earned and continue to hold vested options/shares are excluded from the same opportunity,” they added.

“We therefore request that Walmart gives a complete exit opportunity to all eligible former employees holding vested options,” they further said.

Flipkart has generated more than $1.5 billion in employee wealth through multiple ESOP liquidity programmes, including the latest exercise in July, when the company’s valuation reached $38 billion, per Moneycontrol.

The former executives have asked Walmart’s board for a written response, saying, “We remain proud of our association with Flipkart and of the role we played in building the business.”

“We hope that Walmart will ensure that the value created over the years is shared fairly among all those who contributed to that journey,” they added.