Former Flipkart Executives Seek ESOP Buyback Amid IPO Uncertainty

A group of former senior Flipkart executives, including ex-CEO Mukesh Bansal and ex-CFO Ankit Nagori, have reportedly requested Walmart to buy back their vested employee stock options (ESOPs). The request comes amid uncertainty surrounding the e-commerce giant's plans for a public listing.

The executives are said to have written to Walmart's board, demanding an opportunity for a complete exit. They argue that their contributions of time, effort, expertise, and commitment over 10-15 years ago helped build the company's current value. The group believes former employees should not be disadvantaged simply because they are no longer on Flipkart's payroll.

This push follows Walmart's second tranche of Flipkart's employee stock buyback program in July, which reportedly valued Flipkart at approximately $38.2 billion. However, eligible employees could only liquidate up to 5% of their vested options.

Flipkart's IPO plans have been deferred as parent company Walmart seeks a valuation of $50 billion for the e-commerce entity. While the company has reversed its decision to list abroad and is considering domestic exchanges, a firm timeline for its public market debut is not yet established. The IPO is now reportedly postponed until 2028, with a focus on improving profitability and achieving EBITDA breakeven by FY27.

Walmart has acknowledged the former executives' concerns, stating they take all feedback seriously and are reviewing the matter. A spokesperson reiterated that an IPO remains an active part of their strategic roadmap, emphasizing a thoughtful and disciplined approach for a successful transition to public markets.