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Flipkart Eyes New Esop Plan Amid Employee Unease
1 Oct
Summary
- Flipkart considering new Esop program for employee cash-outs.
- Uncertainty over IPO causes employee unease about liquidity.
- Previous Esop program offered 5% cash-out of vested options.
Flipkart is exploring a new employee stock option (Esop) program to alleviate employee anxiety regarding uncertain IPO timelines and future liquidity events. This potential program, discussed for early 2027, might permit eligible employees to cash out 20-25% of their vested holdings, though it remains unfinalized. Investors are expected to provide the necessary liquidity for this initiative.
A previous Esop program, valued at approximately $50 million, ran between July 2025 and July 2026, most recently enabling employees to cash out up to 5% of their vested options in July 2026. This program also covered options vested between July 16, 2023, and July 15, 2026. Such programs are crucial for employee retention and wealth creation, especially when liquidity options are limited outside of an IPO.
Several senior employees have departed Flipkart this year, with some citing better cash compensation elsewhere. This underscores the importance of accessible liquidity for vested equity. Walmart, Flipkart's majority owner, acknowledged employee questions about realizing equity value and stated an IPO remains on the strategic roadmap, but without a definitive timeline.
The company had previously considered filing IPO papers by late 2026 or early 2027, but these plans are paused. Flipkart is now focused on achieving EBITDA break-even by the end of fiscal 2027. Meanwhile, Flipkart India’s consolidated revenue rose to ₹82,787.3 crore in FY25, though its net loss widened to ₹5,189 crore.
