More than 1,000 former employees of the Flipkart group have appealed to Walmart and Flipkart’s board for fair access to opportunities to monetise their vested employee stock options (ESOPs), as uncertainty over the e-commerce company’s initial public offering (IPO) continues.
The collective representation includes former employees from Flipkart, Myntra, Cleartrip, Shopsy and Supermoney. The group is seeking access to liquidity opportunities available to current employees, an extension of the period for exercising vested options after leaving the company, and a designated point of contact to discuss the matter with Walmart and Flipkart representatives.
According to a written memo dated 11 October, the former employees want the post-exit exercise window for vested options to remain open until the next liquidity event. This would prevent options from lapsing solely because an employee has left the organisation. They have also requested a meeting with company representatives to discuss their concerns.
The appeal follows an earlier letter from former senior executives. The executives had sought fair treatment for the equity they earned during their tenure at the company.
The dispute centres on the difference in liquidity opportunities available to current and former employees. According to sources cited in earlier Moneycontrol reports, more than 30,000 current and former Flipkart employees could collectively receive around $4 billion (approximately Rs 38,000 crore) through ESOP buybacks yet to be facilitated by Walmart. Former employees account for roughly half of this amount, while current employees stand to receive around $2 billion.
Many former employees received stock options during the company’s early years, between 2008 and 2016, and have held them for more than a decade. They argue that these options formed part of their compensation and were earned through their service. They are seeking a meaningful opportunity to monetise their vested holdings rather than being restricted to a limited allocation in a future buyback.
The uncertainty surrounding Flipkart’s IPO has added to the urgency. While the company has maintained that a public listing remains part of its strategic roadmap, it has not announced a firm timeline. Walmart has reportedly asked Flipkart CEO Kalyan Krishnamurthy to prioritise profitability before pursuing its public-market plans.
Flipkart has conducted several employee liquidity programmes in the past. Including an exercise in July, these programmes have generated more than $1.5 billion in value for employees, according to Moneycontrol.
Former employees argue that their departure should not automatically exclude them from future liquidity opportunities. They have also pointed out that early investors, founders and current employees have had opportunities to realise the value of their holdings, while many former employees continue to wait.
The group has clarified that its representation is intended to seek equitable treatment rather than raise a grievance against the company. It has asked Walmart’s board to respond in writing and consider extending the liquidity opportunity to eligible former employees.
