Thousands of former Flipkart employees have intensified their call for Walmart to offer a buyout for their vested employee stock options (ESOPs), seeking liquidity options separate from the group’s delayed IPO plans. This comes alongside notable financial declines for Flipkart Internet and cautious earnings reports from major Indian IT firms Wipro and Tech Mahindra.
- Flipkart ex-staff lobby Walmart for ESOP liquidity independent of IPO
- Flipkart’s marketplace revenue down 19%, Myntra returns to loss in FY26
- Wipro Q2 profit dips slightly, Tech Mahindra’s rises strongly
What happened
Former Flipkart employees have renewed their push for Walmart to buy out their vested employee stock options (ESOPs), citing the absence of a clear timeline for the company’s IPO. In a fresh appeal to Walmart’s board, thousands of ex-staff members signed a petition seeking liquidity options comparable to those provided to current employees and other stakeholders. Their campaign emphasizes the need for certainty and fair treatment amidst prolonged IPO delays.
Financial data reveals that Flipkart Internet's ecommerce marketplace business suffered a 19% decline in operating revenue in fiscal year 2026, dropping to Rs 16,295 crore. Revenue from marketplace services plunged 53% after fee removals aimed at attracting sellers, contributing to a nearly tripled net loss of Rs 5,498 crore. Fashion e-tailer Myntra, once the group's sole profitable unit, swung into a Rs 579 crore net loss as revenue dropped 13% year-on-year.
Why it matters
The push for an ESOP buyout underscores broader challenges in Indian startup compensation and liquidity avenues, especially when IPO plans are uncertain. Former employees’ liquidity concerns highlight the financial and emotional stakes for individuals whose equity wealth is locked up amid market and strategic delays.
Flipkart’s financial pressures, illustrated by steep revenue drops and escalating losses, signal headwinds in India’s ecommerce sector. As the marketplace adjusts product fees and seller incentives, sustaining growth remains difficult. Meanwhile, Myntra’s losses jeopardize the group’s previous reliance on this business as a profit center, amplifying concerns for stakeholders and investors.
What to watch next
Market attention will focus on any response from Walmart regarding the proposed $2 billion ESOP buyback and whether the company provides a more concrete IPO roadmap or alternative liquidity events for former employees. A resolution in favor of ESOP holders could set precedents for employee exits in high-growth Indian startups.
Additionally, the Q2 results of Indian IT firms are indicative of sector trends. Wipro reported a slight net profit decline of 1.9% year-on-year, with subdued deal bookings, while Tech Mahindra recorded a 32.7% profit increase and revenue growth over 15%. These contrasting outcomes may influence investor sentiment and strategies amid a dynamic technology services environment.