Flipkart has announced a new Employee Stock Ownership Plan (ESOP) buyback worth $50 million, giving thousands of employees another chance to convert part of their stock options into cash. The announcement comes as the Walmart-owned ecommerce company continues preparing for its planned Initial Public Offering (IPO) in India while rewarding employees for their contribution to the company’s growth.
This is Flipkart’s second ESOP liquidity event of 2026 and shows the company’s continued focus on employee wealth creation. Along with this, Flipkart has recently completed its move back to India from Singapore, an important step towards its future stock market listing.
Flipkart Offers New ESOP Buyback for Over 7,000 Employees
Under the new ESOP buyback programme, around 7,000 to 7,500 active employees will be eligible to participate. Employees who are on the company’s rolls as of July 15, 2026, can sell up to 5% of their vested stock options that were earned between July 16, 2023, and July 15, 2026.
According to an internal message from Flipkart Group CEO Kalyan Krishnamurthy, the buyback price has been fixed at ₹713.4 per stock option. Eligible employees are expected to receive the payment in August 2026.
The company has also shared that if it meets its business goals by the end of 2025, another 5% ESOP liquidity window may be offered in early 2027.
ESOP buybacks have become a popular way for startups to reward employees. Instead of waiting for an IPO, employees get an opportunity to earn money from their stock options while continuing to work with the company. Flipkart has regularly organised such buybacks over the years, making it one of the leading companies in India when it comes to employee stock rewards.
Reverse Flip Brings Flipkart Closer to Its IPO Plans
The latest ESOP announcement comes soon after Flipkart completed its “reverse flip” by shifting its corporate base from Singapore to India.
As part of this restructuring, the National Company Law Tribunal (NCLT) approved the merger of Flipkart’s Singapore-based holding companies into Flipkart Internet Pvt. Ltd. The move also brings major businesses like Myntra and Ekart under one India-based company.
This restructuring is considered an important step before Flipkart launches its IPO in India. Having its headquarters and holding company in India makes the listing process easier and better aligned with Indian regulations.
However, Flipkart’s IPO is expected to take a little more time. Walmart, the company’s parent, wants Flipkart to improve its profitability before going public. The current focus is on achieving EBITDA breakeven before moving ahead with the IPO, which is expected before March 2027.
Many technology companies are now focusing on strong financial performance before entering the stock market, and Flipkart appears to be following the same approach.
Earlier ESOP Payout Sparked Tax Debate and Created Wealth
Flipkart’s latest ESOP buyback has also brought attention back to its massive $700 million ESOP payout in 2023 after the separation of PhonePe.
When PhonePe became a separate company, the value of Flipkart’s shares fell. To make up for this loss, Flipkart gave a one-time cash payment of $43.67 for every unexercised stock option to both current and former employees. It became one of the biggest ESOP payouts in India’s startup ecosystem.
Later, this payment became part of a tax dispute. The Income Tax Department said the compensation should be taxed as a salary benefit, even though employees had not exercised or sold their stock options.
The matter reached different High Courts, but the judgments were not the same. The Delhi High Court ruled that the payment was not taxable because the stock options were never exercised. The Karnataka High Court also ruled in favour of employees, saying it was a non-taxable capital receipt since no shares were sold. However, the Madras High Court gave a different decision and said the payment should be taxed as a salary benefit because employees received money without making any payment.
These different court rulings have created uncertainty for ESOP holders across the country. Tax experts believe a final decision from the Supreme Court or clear guidelines from the Central Board of Direct Taxes (CBDT) will help remove the confusion.
Apart from the tax issue, Flipkart’s ESOP payouts have also created wealth for many employees. Many of them have invested this money in buying homes, especially in Bengaluru, where demand for residential property has increased. Industry experts say ESOP earnings from companies like Flipkart are helping boost the city’s real estate market.
With another ESOP buyback now announced, Flipkart continues to reward its employees while moving steadily towards its long-awaited IPO in India.