Former Flipkart staff seek Esop buyback inclusion

A petition has been launched by former Flipkart group employees and executives, aiming to unite 20,000-30,000 ex-staffers to advocate for their inclusion in the planned $2 billion Esop buyback. They are urging Walmart, Flipkart’s parent company, to provide an exit for their vested employee stock options (Esops).

The move follows an email to Walmart’s board by former Flipkart group CXOs seeking a buyout of their vested options. In response, Walmart’s legal counsel said it will consider former employees as part of liquidity at Flipkart’s initial public offering (IPO), without offering any firm commitment.

Esop Buyback Demands

The petition made three key demands: extending the exercise window for vested Esops held by former employees until the next liquidity event, ensuring they are included in the upcoming buyback on terms comparable to current employees, and appointing a point of contact to engage with a representative group of ex-staffers.

Former employees are raising concerns over the lack of clarity on when they would be able to monetise their vested holdings. The representation clarified that it was a request for dialogue rather than a legal notice or claim, people with knowledge of the matter said.

Flipkart’s IPO Plans

Flipkart’s IPO plans remain uncertain, with group CEO Kalyan Krishnamurthy stating that the company does not have a timeline for going public. The ecommerce company was preparing to tap the domestic capital markets for a public offering, according to people aware of the matter.

In July, Flipkart announced a second $50-million round under which eligible current employees could sell up to 5% of their vested stock options at a valuation of $38.2 billion. Former employees, including Myntra cofounder Mukesh Bansal, ex-Flipkart group chief financial officer Sanjay Baweja, and chief business officer Ankit Nagori, sought “fair treatment” for the vested stock options that were given out 10-15 years ago.

As the issue gathers momentum, former employees are hoping for a fair exit opportunity. The petition said, “Our options were earned through years of service, often at real personal and financial risk. We ask that the company consider former employees before the terms of the new buyback are finalised.”

Queries sent to Walmart did not elicit a response at the time of publishing. The company’s response to the petition will be closely watched by former employees and industry observers alike.

Former Employees’ Concerns

As one person familiar with the matter said, “They have said that former employees will be considered… during the IPO when it happens.” However, this response has not alleviated the concerns of former employees, who are seeking a more concrete commitment from Walmart.