The move comes as Flipkart, now domiciled in India, advances preparations for a potential domestic IPO while continuing its strategy of rewarding employees and retaining talent.
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Walmart-owned Flipkart has announced its second employee stock ownership plan (ESOP) liquidity event in two years, allowing eligible employees to liquidate up to 5% of their vested stock options, as the e-commerce major moves closer to a potential public listing after shifting its domicile to India.
In an internal note to employees, Group Chief Executive Kalyan Krishnamurthy said the company’s board had approved the second discretionary liquidity programme after it met the business milestones it set last year. Businessline has seen the copy of the mail.
Under the Flipkart Stock Option Plan 2026, all active employees as of July 15, 2026, will be eligible to sell up to 5% of their outstanding options that vested during the three-year period between July 16, 2023, and July 15, 2026. The liquidity price has been fixed at ₹713.4 per option, with payouts scheduled for August.
“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. I am pleased to share that, after reviewing the progress we have made together, the Board has approved this second discretionary ESOP liquidity event,” Krishnamurthy said in the memo.
Second buyback follows achievement of business milestones
The latest programme follows Flipkart’s $50 million ESOP buyback announced in 2025, which also allowed employees to liquidate up to 5% of their vested stock options. At the time, the company had said it would consider a second liquidity event if it achieved predefined business objectives. The latest announcement fulfils that commitment.
The latest buyback comes at a time when Flipkart is preparing for its next phase as an India-domiciled company, a move widely seen as paving the way for a domestic initial public offering.
“As we begin this next chapter as an India-domiciled company, our ambition remains unchanged—to build one of the world’s most admired technology and commerce companies from India,” Krishnamurthy wrote.
ESOP liquidity events continue ahead of potential IPO
Flipkart has consistently used ESOP liquidity events to reward employees and retain talent. Following Walmart’s acquisition of the company in 2018, it rolled out a roughly $100 million ESOP buyback. That was followed by two much larger liquidity programmes, worth about $700 million each in 2021 and 2023, among the biggest employee wealth-creation events in India’s startup ecosystem.
The latest liquidity event is expected to provide another opportunity for employees to monetise part of their equity while reinforcing Flipkart’s efforts to retain talent ahead of a potential IPO.
Published on July 6, 2026
