Group CEO and co-founder Binny Bansal resigns following allegations of 'serious personal misconduct'
Flipkart Group chief executive Binny Bansal has resigned from his post following an independent investigation by the Indian e-commerce giant and Walmart into an allegation of 'serious personal misconduct'.
Bansal has, however, denied the allegation, and being a shareholder, he will continue to hold his Board position at Flipkart.
In a statement issued on Tuesday evening, Walmart said Bansal has stepped down with immediate effect, without sharing any details of the nature of the alleged misconduct.
Binny has been an important part of Flipkart since co-founding the company, Walmart said in the statement, adding that recent events risked becoming a distraction and hence Binny made a decision to step down.
With this move, India's largest online retailer will not have either of its co-founders in the company anymore. Another co-founder, Sachin Bansal (not related to Binny) had exited the company after selling his stake to Walmart.
According to the US-based retailer, which acquired a 77% stake for $16 billion in the Singapore-based holding company of Flipkart earlier this year, it had a responsibility to ensure the investigation was deliberate and thorough.
"While the investigation did not find evidence to corroborate the complainant's assertions against Binny, it did reveal other lapses in the judgement, particularly a lack of transparency related to how Binny responded to the situation. Because of this, we have accepted his decision to resign," it said in the statement, adding that Binny has been contemplating a transition for some time and the company has been working together on a succession plan, which has now been accelerated.
"This certainly is a hiccup," said Harish Bijoor, an industry consultant based in Bengaluru. "(It) raises the question of what plans are ahead for Flipkart. The path the company will take will have a trajectory which is controlled by new investors."
Going forward, Kalyan Krishnamurthy will continue to be CEO of Flipkart, which will now include Myntra and Jabong. These fashion verticals will continue to operate as separate platforms within the Flipkart business.
Ananth Narayanan, CEO of Myntra and Jabong, will report to Krishnamurthy while Sameer Nigam will continue leading PhonePe as CEO. Both Krishnamurthy and Nigam will report directly to the Board.
"As we look ahead, we have full confidence in the strength and depth of leadership across the company. We remain committed to investing for the long-term and are supportive of the leadership team's desire to evolve into a publicly-traded company in the future," Walmart said.
- With Reuters
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