Former Flipkart Executives Demand ESOP Cash-Out from Walmart
A group of former Flipkart executives, including Mukesh Bansal and Ankit Nagori, have written to Walmart's board seeking a full cash-out of their long-held employee stock options, citing the deferred IPO and unequal liquidity opportunities.
Former Flipkart leaders including Ankit Nagori and Mukesh Bansal have written to Walmart’s board seeking cash-out of vested ESOPs granted during their tenure. The push comes amid uncertainty over Flipkart’s IPO timeline, which has been deferred to 2028. More than 30,000 current and former Flipkart employees could collectively receive about $4 billion through ESOP buybacks yet to be facilitated by Walmart.
Former employees account for roughly half of that $4 billion total. The letter, signed by at least eight former CXOs and senior executives, argues for equal treatment. It states that early investors and co-founders have exited, and current employees have had multiple liquidity opportunities, while former staff with vested options remain excluded. "We accepted these options as an important and integral part of our compensation and have continued to hold them for more than a decade," the letter noted. The executives are not seeking preferential treatment, only access to the same opportunity to realise equity earned 10 to 15 years ago when Flipkart was in its growth stages.
Scale of the ESOP opportunity
Former employees represent roughly half of the total potential ESOP buyback value. Current Flipkart employees stand to receive around $2 billion from the buybacks.
| Group | Approximate ESOP Value |
|---|---|
| Current & Former Employees (Total) | $4 billion (₹38,000 crore) |
| Current Employees | ~$2 billion |
| Former Employees | ~$2 billion |
Context of delayed liquidity and IPO
Flipkart’s IPO is deferred to 2028 as it targets breakeven at an EBITDA level by FY27. Recent liquidity events have been limited for current staff. A July employee buyback allowed eligible current employees to sell only up to 5% of their vested options, valuing Flipkart at around $38.2 billion. Walmart is reportedly seeking a $50 billion valuation for the company. The letter from former executives acknowledges the business decision and welcomes liquidity for current employees but questions the exclusion of those who left. It is difficult to understand why former employees who continue to hold vested options should be excluded solely because they are no longer employed by the company, they wrote.
Walmart’s response and next steps
Walmart has said it will examine the matter raised by the former executives. A company spokesperson stated, "We appreciate the perspective of all employees-current and former-and value their feedback." No detailed response had been shared at the time of reporting. The letter was addressed to Walmart chairman Gregory B Penner and other senior executives in early October.
Broader Flipkart strategic shifts
As it defers its public listing, Flipkart is focusing on profitability and expansion. The company is doubling down on its quick commerce vertical, Flipkart Minutes, aiming to double its dark store count to 2,000 by mid-2027. It is also looking to enter new businesses like food delivery and event ticketing. Financially, Flipkart Internet reported a 14% year-on-year rise in total income to Rs 20,807.4 crore in FY25, with a 36.7% decline in consolidated net loss to ₹1,494.2 crore. The story will be updated upon receiving a response from Walmart, Flipkart, or the executives involved.
