Flipkart Employee Stock Option Plan Liquidity Opportunity

Flipkart has unveiled a new chance for liquidity through its Employee Stock Option Plan (ESOP), as shared in an internal memo from the chief executive officer, Kalyan Krishnamurthy. This initiative allows eligible employees to sell up to 5% of their vested ESOPs starting from July 5, 2025, at a buyback price set at $174.32 per option. Employees can expect payouts to be made in August 2025 under the Flipkart Stock Option Plan 2012.

Details of the ESOP Buyback

According to an ET report, the total buyback size for the ESOP is estimated at $50 million, potentially benefiting between 7,000 to 7,500 employees. Currently, Flipkart holds a valuation of approximately $36 billion.

Future Liquidity Options

Krishnamurthy mentioned that if essential performance metrics are achieved by the end of 2025, there could be another 5% liquidity opportunity available in early 2026. A Flipkart spokesperson has corroborated this development to Startup Superb.

Previous Achievements and Future Prospects

This announcement comes on the heels of Flipkart’s record-breaking $700 million payout to employees in 2023, marking one of the most significant ESOP buyback events in the history of Indian startups. Media reports further suggest that the company is preparing to launch its IPO with a valuation between $60 and $70 billion. In addition, the board has sanctioned the transition of its holding structure from Singapore to India.

Market Trends in ESOP Liquidity

In 2025, a number of startups including Darwinbox, Rapido, Univest, Deserve, and Even Healthcare have introduced ESOP buyback and liquidity initiatives totaling around $67 million. In 2024, more than 20 startups executed a total of $200 million in such programs. Data from various sources indicates that the total ESOP buyback or liquidity amount reached $802 million in 2023, $440 million in 2021, and $200 million in 2022.