The Walmart-owned Flipkart has launched its second employee stock ownership plan (ESOP) liquidity event in just two years, allowing eligible employees to liquidate up to 5% of their vested stock options at ₹713.4 per option. According to an internal email from Group Chief Executive Kalyan Krishnamurthy reviewed by Moneycontrol, the company's board approved the second discretionary liquidity programme after meeting the business milestones it set last year. As Krishnamurthy stated in the email, "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. After reviewing the progress we have made together, the Board has approved this second discretionary ESOP liquidity event." The liquidity event is scheduled for August 2026 payouts, marking the second discretionary ESOP liquidity event after Flipkart announced last year that follow-on windows would be contingent on achieving specific business goals.
Under the Flipkart Stock Option Plan 2026, all active employees as of July 15, 2026, will be eligible to liquidate outstanding stock options that vested between July 16, 2023, and July 15, 2026. As reported by Moneycontrol, Krishnamurthy explained that the latest programme follows Flipkart's $50 million ESOP buyback announced in 2025, which benefited more than 7,000 employees and allowed eligible staff to liquidate up to 5% of their vested stock options. The current liquidity event fulfils that commitment made last year when the company said it would consider a second liquidity event if it achieved predefined business objectives. The programme comes as Flipkart prepares for its next phase as an India-domiciled company, viewed as a precursor to a potential domestic initial public offering. According to people aware of the development, the second liquidity event is pegged at around $25 million, taking the combined value of both tranches to about $50 million.
According to the internal email, Flipkart has continued to post strong growth despite challenging macroeconomic conditions, with Krishnamurthy crediting employees for helping strengthen the company's long-term foundations. As reported by Moneycontrol, the liquidity event is intended to recognize employee contributions to building the company, with every customer served, seller empowered, product built, and challenge overcome contributing to Flipkart's enduring value. The company has been rewarding employees through periodic stock buybacks as it seeks to retain talent amid intensifying competition across ecommerce and quick commerce sectors. Following Walmart's acquisition of the company in 2018, Flipkart rolled out a roughly $100 million ESOP buyback, 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. For employees, the approval marks another payout opportunity at a time when ESOP liquidity has become an important retention and wealth-creation tool across India's startup and internet economy.
Looking ahead, Krishnamurthy said Flipkart's ambitions remain unchanged even after shifting its domicile to India. According to the internal email reviewed by Moneycontrol, he stated that as the company begins its next chapter as an India-domiciled entity, the ambition remains to build one of the world's most admired technology and commerce companies from India. Krishnamurthy emphasized that as the company moves closer to a potential public listing after shifting its domicile to India, the opportunity ahead is immense and firmly believes the company's best work is still to come. 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. This strategic move comes as the company prepares for its next phase as an India-domiciled company, a move widely seen as paving the way for a domestic initial public offering. The programme also reflects a broader trend in mature startups, with data from equity management platform Qapita showing startup ESOP liquidity programmes totalled $423 million across 27 programmes in FY26, up 70% from $248 million across 31 programmes in the previous financial year.
