More than 1,000 former employees of the Flipkart group have joined a collective appeal to Walmart and Flipkart’s board, escalating a dispute over employee stock options as the e-commerce company’s IPO remains uncertain. The former employees, who span Flipkart, Myntra, Cleartrip, Shopsy, and Supermoney, are seeking a more equitable opportunity to monetize their vested equity.
This initiative follows an earlier letter sent by a group of former senior executives, including ex-Myntra CEO Mukesh Bansal and former Flipkart CTOs Amod Malviya and Ravi Garikipati, as previously reported by Moneycontrol. The current appeal is framed as a collective representation rather than a signature campaign.
In their appeal, the former employees have three key requests: an extension of the liquidity opportunity offered to current employees to eligible former employees, an extension of the post-exit exercise window for vested options until the next liquidity event to prevent options from lapsing, and a designated point of contact at Flipkart/Walmart, along with a meeting to discuss the issue.
The dispute stems from what former employees perceive as a significant disparity in treatment between current and former employees. Sources indicate that over 30,000 current and former Flipkart employees are collectively entitled to around $4 billion (approximately Rs 38,000 crore) from ESOP buybacks that Walmart has yet to facilitate. Former employees account for roughly half of this amount.
The former employees argue that their stock options were part of their compensation earned during their tenure, with many early employees having held these options for over a decade. They are seeking a complete exit opportunity for eligible former employees holding vested options, rather than a limited allocation in a future buyback.
The urgency of the situation is amplified by the continued delay of Flipkart’s IPO, which was seen as the most likely route to liquidity for employees holding equity. While Flipkart maintains that a public listing is part of its strategic roadmap, no firm timeline has been provided, especially as competitors like Swiggy and Meesho have already gone public.
Flipkart has previously facilitated significant wealth creation for employees through ESOP liquidity programs, totaling over $1.5 billion in value when its valuation reached $38 billion. However, former employees contend that leaving the company should not preclude them from realizing the equity they earned.
Their appeal also draws a comparison to early investors and Flipkart’s founders, who have had opportunities to realize their investments, and current employees who have received multiple liquidity opportunities. They argue that former employees should not be the sole group left waiting.
The former executives emphasize that their appeal is a request for fair treatment, not a grievance against Flipkart. They have asked Walmart’s board for a written response and to consider extending the liquidity opportunity to eligible former employees.
