Flipkart's Binny Bansal Quits As CEO After "Personal Misconduct" Probe

Lloyd Doyle
November 13, 2018

Binny Bansal, chief executive of India's biggest online retailer, Flipkart, has resigned following an investigation into his conduct. It did not provide details about the nature of the misconduct but said that Bansal had denied the allegations.

In statements posted on their respective websites, Flipkart and parent Walmart said that Bansal's resignation was effective immediately. "Nevertheless, we had a responsibility to ensure the investigation was deliberate and thorough", said a Walmart spokesperson.

However, in a combined statement, they said he had shown "a lack of transparency" in his response to the situation.

This is published unedited from the PTI feed.

It added that the events surrounding the allegations had "risked becoming a distraction", prompting Bansal's decision to step down.

In an internal email, Krishnamurthy sought to assuage employee concerns stating that "there will be no changes in our operating processes, or to the mission of the company as a result of this news". The company said Bansal had been contemplating a transition for some time.

According to Walmart's filing with the SEC, Bansal was mulling stepping down from running the company for a while, but his decision was accelerated by the findings of the investigation. He also told the ET that he would continue to hold Flipkart shares and would continue to be a member of board of directors.

Sachin and Binny Bansal (not related to each other) started Flipkart in 2007 with Rs 4 lakh, going door-to-door to deliver books.

"Kalyan Krishnamurthy will continue to be the CEO, which will now include Myntra and Jabong, continuing to operate as separate platforms within Flipkart", the statement reads. Sameer Nigam will continue leading PhonePe as CEO.

Kalyan Krishnamurthy, now chief of the Flipkart division, will report directly to the board, Walmart said. "Both Kalyan and Sameer will report directly into the board", adds the release.

"The investigation could not corroborate the allegation". 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.

Other reports by Iphone Fresh

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