Flipkart valuation rises to $38.2 billion after ESOP buyback

BENGALURU: Some milestones are measured in sales. Others show up in stock options. Flipkart has reached an estimated valuation of $38.2 billion following the second tranche of its employee stock buyback programme, reflecting a 6 per cent increase from the $36 billion valuation at which the Walmart-owned ecommerce company last raised private capital in May 2024, according to a Moneycontrol report citing people familiar with the matter.

The revised valuation emerged after the completion of the second phase of Flipkart’s two-part Employee Stock Ownership Plan (ESOP) liquidity programme, collectively valued at around $50 million (approximately Rs 475 crore).

The company had launched the first tranche, worth about $25 million, in July 2025, with the second phase tied to specific business performance milestones over the following year.

In an internal communication dated 6 July, Group Chief Executive Officer Kalyan Krishnamurthy informed employees that the company had achieved the required targets, allowing eligible staff to monetise an additional portion of their vested stock options.

The latest liquidity event comes at a time when India’s startup ecosystem continues to navigate subdued funding activity and cautious public markets, making employee buybacks an increasingly important mechanism for rewarding long-term talent.

According to the report, the revised buyback price reflects the company’s higher valuation. During the first tranche in July 2025, Flipkart had priced employee stock options at $174.32 per option, equivalent to more than Rs 14,000 under its previous shareholding structure.

However, direct comparisons are complicated by Flipkart’s corporate redomiciling from Singapore to India. Following the restructuring, employee stock options were converted into shares of the India-incorporated entity, altering the economics of each option. After adjusting for the domicile shift, sources cited by Moneycontrol said the effective value of the July 2025 buyback worked out to approximately Rs 672 per option.

Under the latest programme, employees were offered around Rs 713.4 per option, representing a 6 per cent year-on-year increase and implying an overall company valuation of roughly $38.2 billion.

The valuation uplift also comes as Flipkart reassesses its capital market plans. According to earlier Moneycontrol reports, the company has postponed its proposed initial public offering and paused discussions around a fresh private fundraising round, opting instead to focus on improving profitability and operational performance before approaching public investors.

Flipkart did not respond to Moneycontrol’s queries regarding the revised valuation, the report said.

The latest ESOP buyback signals that while India’s technology sector remains more cautious than during the peak funding years, established startups continue to create value for employees even as they prioritise sustainable growth over aggressive fundraising.