Flipkart weighs larger ESOP cash-out as IPO timeline stays unclear
Kalpana Maurya
1 Oct 2026 · 3 min read
Flipkart is discussing a fresh employee stock option liquidity round that could let eligible staff sell 20-25% of their vested holdings in early 2027. The talks reflect pressure from employees whose wealth is locked in an unlisted company while the Walmart-owned group has no fixed listing date.
Flipkart is considering another employee stock option (ESOP) liquidity programme that could allow eligible employees to sell 20-25% of their eligible vested holdings early next year, Mint reported on 1 October 2026, citing four people familiar with the discussions. The proposal has not been finalised, and existing investors are expected to fund the buyback.
The discussions come as uncertainty over the timing of Flipkart's initial public offering has left employees with sizeable equity but few ways to turn it into cash. Walmart, the US retailer, holds a majority stake in Flipkart.
What is being discussed
According to Mint, the window would be open only to current employees whose options vested three to five years ago. Mint could not establish which investors would supply the liquidity or how many employees would qualify.
One former senior executive told Mint that management wants the round but that it may not go ahead, pointing to market conditions and whether the board can bring investors on board as possible obstacles. Flipkart's ESOP terms, according to the same report, do not allow employees to sell their holdings on their own in the secondary market.
The earlier buyback
Flipkart ran a two-part programme worth about $50 million between July 2025 and July 2026. In the most recent tranche, in July, eligible employees could cash out up to 5% of their vested options, priced at ₹713.4 per option, covering options that vested between 16 July 2023 and 15 July 2026.
Business Standard, reporting on 29 September, said the second tranche valued Flipkart at about $38.2 billion, about 6% above the roughly $36 billion valuation of its May 2024 private fundraise. A Tracxn cap table last updated in June 2024, cited by Mint, put the ESOP pool at 4.48% of the company, or 8,772,644 shares.
Why employees are uneasy
Mint reported that Flipkart had earlier considered filing draft IPO papers with the Securities and Exchange Board of India by late 2026 or early 2027, but those plans were paused after Walmart asked the company to reach Ebitda break-even by the end of fiscal 2027, citing a Moneycontrol report from May. Business Standard's sources said the listing could slip by another one to two years.
Senior exits have added to the unease. A former senior executive told Mint that 10-12 senior employees had left this year, some for jobs with more cash pay. Mint, citing Moneycontrol, said vice-presidents Prathyusha Agarwal and Aakriti Chandra resigned in September, after earlier exits by senior vice-president Gunjan Bhartia and vice-president Amer Hussain. Group CFO Sriram Venkataraman is also stepping down, Flipkart said in March.
In a message to Flipkart employees shared with Mint, Walmart said an IPO "remains an active part of our strategic roadmap" but gave no date or details of another liquidity event.
The wider picture
Flipkart India's consolidated revenue from operations rose to ₹82,787.3 crore in FY25 from ₹70,541.9 crore in FY24, while its net loss widened to ₹5,189 crore, according to MCA filings cited by Mint. Peers such as PhysicsWallah and Meesho have listed, and Spinny has filed confidential draft papers.
Satish Mugulavalli, founder and managing partner of ESOP liquidity fund Hissa Fund, told Mint that employees who expected listing-linked liquidity may receive only partial liquidity, or none immediately, if an IPO is pushed out.
Key facts
- Company: Flipkart (majority-owned by Walmart)
- Proposal: ESOP liquidity round allowing sale of 20-25% of eligible vested holdings
- Possible timing: early 2027 (not finalised)
- Eligibility under discussion: current employees with options vested three to five years ago
- Previous programme: about $50 million, July 2025 to July 2026; up to 5% of vested options at ₹713.4 each in July 2026
- Reported: 1 October 2026 (Mint)
Frequently asked questions
What is Flipkart considering for its employees?
A new ESOP liquidity round, discussed for early 2027, that could let eligible current employees sell 20-25% of their eligible vested holdings. It has not been finalised.
Who would pay for the ESOP buyback?
Existing investors are expected to provide the liquidity, according to Mint, though which investors would take part is not known.
How much did employees cash out in the last round?
In July 2026, eligible employees could sell up to 5% of their vested options at ₹713.4 each, as part of a two-part programme worth about $50 million.
When will Flipkart go public?
No date has been set. Walmart told employees an IPO remains part of its roadmap, and Business Standard's sources said the listing could be delayed by one to two years.
