Flipkart CEO, Binny Bansal announced his resignation from the e-commerce giant on Tuesday. The decision was taken following an internal investigation into an allegation of “serious personal misconduct.” The announcement came just 6 months after he led the company into a global acquisition deal with Walmart. According to Reuters, his resignation was due to a sexual assault case against him, many years ago.
“Binny has been an important part of Flipkart since co-founding the company, but recent events risked becoming a distraction and Binny has made a decision to step down. His decision follows an independent investigation done on behalf of Flipkart and Walmart into an allegation of serious personal misconduct. He strongly denies the allegation,” Walmart said in a statement on Tuesday. However, the investigation, which was carried out by a personal law firm, couldn’t find any serious evidence against him. Binny Bansal was apparently contemplating an expansion plan which has now been accelerated after his resignation according to Walmart.
Binny Bansal has strongly denied the allegations. He also said that it had been a difficult time for him and his family. He will still remain Flipkart’s largest individual shareholder with a stake of 5.6% in the company. However, he will not be a part of the day-to-day operations. Walmart had acquired a 77% stake worth $16 billion in India’s fastest growing startup. SoftBank Vision Fund, one of Flipkart’s largest investors, had a gain of Rs 9,457.8 crore on selling its stake in Flipkart.
Binny Bansal had founded the company with his IITian friend Sachin Bansal. However, Sachin Bansal had quite the company following the acquisition deal with Walmart. Sachin was Flipkart’s longest-serving CEO and it was reported that he had favoured a deal with Amazon. He quit the company and his 6% stake left him a billion dollars richer.
Kalyan Krishnamurthy will continue to be the CEO of Flipkart. Moreover, Ananth Narayan will serve under him and head Jabong and Myntra which were acquired by Flipkart. “I am very confident in the ability of the Flipkart, Myntra and Jabong teams to keep guiding us to greater successes. Flipkart will continue to invest heavily in supply chain, innovation & technology, with a focus on optimizing operations, and empowering you all to deliver an exceptional customer experience,” said Krishnamurthy.
By Abhishek Aggarwal