Flipkart to Buy Back $50 Million in ESOPs, Benefiting at Least 7,000 Staff

Flipkart, the Walmart-owned e-commerce company, has reportedly announced a $50 million (around ₹430 crore) employee stock ownership plan (ESOP) buyback. The company, which is gearing up for a potential IPO, has allowed its employees to sell up to 5% of the options vested over the past three years.

According to The Economic Times, which first reported the news, Flipkart CEO Kalyan Krishnamurthy announced the ESOP buyback in an email sent on Friday.

"The Board has approved a discretionary ESOP liquidity opportunity (under the Flipkart Stock Option Plan 2012) wherein all active employees as of 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., between July 6, 2022, and 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," he wrote in the email, a copy of which ET shared on its website.

A Flipkart spokesperson confirmed the development to news portal Entrackr.

"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," the email added.

Flipkart’s last major ESOP buyback was in 2023, when both current and former employees participated in a $700 million buyback programme. The latest round is exclusively for current employees and is expected to benefit around 7,000 people, according to the report.

Why an ESOP buyback now?

According to Moneycontrol, the ESOP buyback could be aimed at preventing employee poaching by rivals such as Blinkit, Swiggy, Zepto, and others. Data from LeadIQ shows that Flipkart has approximately 74,000 employees as of July 2025, with team members spread across six continents.

"We have had an energetic first half, and it is heartening to see your agility and relentless execution. Our core businesses are faring well, while quick commerce continues to scale at an unprecedented pace, delivering unparalleled convenience to our customers," Krishnamurthy wrote in his message to employees, adding that "in an industry as dynamic and competitive as ours, past successes are a foundation for future achievements."