Flipkart Promoter and Group CEO Binny Bansal resigned with immediate effect over an allegation of “serious personal misconduct”.
India’s most valuable startup was acquired by Walmart, the world’s largest company by revenue 6 months back. Walmart bought a 77% stake in Flipkart.
The 36-year-old Binny Bansal quit on 13.10.2018 as Chairman and Group CEO following an independent investigation into an allegation.
Though Walmart has not disclosed the nature of the allegations. Sources say the complaint was filed in July by one of the ex-employees of Flipkart. Following which an inquiry was conducted by an independent law firm at the behest of Flipkart board.
According to reports, a couple of factors forced Binny Bansal to exit his company. To begin with, the allegations were made by a former woman employee of Flipkart in 2016, who had already left the company in 2012. However, the charges could not be substantiated then. It was also around the time Binny Bansal had taken over the role of group CEO from co-founder Sachin Bansal.
In July 2018, the former employee approached Walmart Global that had just announced its 77% acquisition of the company. According to a report, she wrote to Walmart CEO Doug McMillon about Bansal’s misconduct. Flipkart and Walmart then hired an international law firm to look into the matter. Meanwhile, the Walmart-Flipkart deal was sealed.
Binny Bansal co-founded Flipkart with IITian Sachin Bansal in 2007, denied all the allegations strongly. He will continue to be a large shareholder in the company and serve as a member of the Board of Directors. Binny’s resignation marks the exit of the co-founder’s of India’s largest e-commerce company.