On October 1, a collective of former senior executives from Flipkart sent a letter to all eleven members of Walmart’s board, including chairman Gregory B. Penner and Flipkart chief executive Kalyan Krishnamurthy. The correspondence, obtained by the Economic Times, requests “fair treatment” and a complete cash‑out of the stock options that were granted to these employees 10‑15 years ago.
Background of the request
The signatories describe themselves as early‑stage CXOs, senior vice presidents and other senior staff who joined Flipkart in its formative years of 2007‑2008 and stayed until roughly 2016. During that period the Bengaluru‑based e‑commerce platform expanded from a modest online bookstore into a multi‑category marketplace, adding electronics, media and lifestyle products, and completing high‑profile acquisitions such as Myntra in 2014, Jabong and eBay India. The group also points to the launch of the payments arm PhonePe as a milestone achieved while they were employed.
In the letter, the former leaders stress that the stock options were a “important and integral part of their compensation” and that they have continued to hold the options for more than a decade. They argue that the equity was earned through “time, effort, expertise and commitment” to building the business and that, therefore, they should not be excluded from any liquidity event simply because they are no longer on the payroll.
Current liquidity landscape
The request comes amid a broader context of limited liquidity for former employees. The letter notes that current staff have been given a chance to sell a small portion of their vested options – up to five percent – under Walmart’s second tranche of an employee stock buyback programme conducted in July. That buyback was based on a valuation of roughly $38.2 billion for Flipkart.
Walmart, which owns Flipkart, has reportedly been targeting a $50 billion valuation for the Indian e‑commerce firm. However, the buyback programme does not extend to former employees, a point the signatories describe as a “flashpoint” that has been building for months. One anonymous signatory said, “We do feel let down… We are not asking for something that is unreasonable, but what is due to us.”
Compounding the issue is the indefinite postponement of a potential Flipkart IPO. In July, Flipkart Group CEO Kalyan Krishnamurthy told the Economic Times that the company “does not have any timeline right now and, to be very clear, we never have had any timeline for going public.” A Moneycontrol report from May indicated that Walmart had asked Flipkart to defer any public listing until it achieves EBITDA breakeven by fiscal year 2027, before considering external fundraising.
Industry observers note that other Indian consumer‑focused companies such as Urban Company and Swiggy have already gone public, while firms like Snapdeal have entered the IPO process. The lack of a clear path to a public market for Flipkart has heightened concerns among former employees about realizing the value of their holdings.
Leadership turnover and strategic shifts
The letter also reflects a wave of senior departures that have taken place over the past several months. Notable exits include Myntra CEO Nandita Sinha, who left after more than a decade to head quick‑commerce at Swiggy Instamart, and Ankit Jain, who also moved to Swiggy’s quick‑commerce arm. In quick succession, Vice President Prathyusha Agarwal (strategy), Vice President Aakriti Chandra (talent recruitment for Ekart), Senior Vice President Gunjan Bhartia (business finance), Vice President Amer Hussain (supply chain for Grocery and Minutes), and Flipkart Group CFO Sriram Venkatraman have all stepped down.
In March, Flipkart reportedly asked around 300 employees to leave as part of an annual performance review, a move interpreted as preparation for heightened scrutiny ahead of a possible public listing. At the same time, the company has been hiring for roles tied to its quick‑commerce, logistics and profitability initiatives, signaling a strategic pivot toward faster delivery and margin improvement.
Financially, Flipkart Internet – the marketplace arm – posted a consolidated net loss of ₹1,494.2 crore for FY 2024‑25, a 36.7 percent narrowing from the previous year, while total income rose 14 percent year‑on‑year to ₹20,807.4 crore.
The former executives argue that the early founders, Sachin and Binny Bansal, and early investors have already secured exits, and that the same principle of providing liquidity should extend to former employees who continue to hold vested options. They contend that excluding these stakeholders “disadvantages” them despite the equity being earned during their tenure.
In sum, the letter seeks a written response from Walmart, urging the parent company to “give a complete exit opportunity to all eligible former employees holding vested options.” The signatories frame the request not as a favor but as a matter of fairness and recognition for the contributions made during Flipkart’s early growth phase.
As the situation develops, the tension between former employees and Walmart’s management highlights broader questions about employee equity, corporate governance and the handling of long‑term incentives in large, privately held tech companies operating in India.
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