Flipkart Group CEO Binny Bansal resigns after allegations of ‘misconduct’
Flipkart co-founder Binny Bansal has resigned as group CEO following a probe into allegations of “serious personal misconduct”, the e-commerce company and its parent Walmart Inc said in a joint statement on Tuesday.
“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,” the companies said, adding that his resignation would take effect immediately. (Read full statement here)
“His decision follows an independent investigation done on behalf of the Flipkart and Walmart into an allegation of serious personal misconduct. He strongly denies the allegation,” the statement said.
“While the investigation did not find evidence to corroborate the complainant’s assertions against Binny, it did reveal other lapses in judgement, particularly a lack of transparency, related to how Binny responded to the situation,” it added.
Kalyan Krishnamurthy, who heads the company’s main Flipkart e-commerce operation, will act as chief executive for a broader group of businesses including apparel websites Myntra and Jabong.
Ananth Narayanan will continue to lead the company as CEO of Myntra and Jabong, and will report to Mr Krishnamurthy. Sameer Nigam will continue to lead digital wallet PhonePe as CEO. Both Mr Krishnamurthy and Mr Nigam will report directly to the board.
“The investigation could not corroborate the allegation. It did, however, surface a lack of transparency on Binny’s part.”
Kalyan Krishnamurthy, who heads the company’s main Flipkart e-commerce operation, would now act as chief executive for a broader group of businesses including apparel websites Myntra and Jabong, the company said.
Walmart earlier this year agree to pay $16 billion for a roughly 77 percent stake in the Indian e-commerce firm, Amazon’s main rival for India’s 1.3 billion consumers.
It was the U.S. retailer’s largest-ever deal and a major move in its efforts to oppose Amazon at home and abroad.
The US brand said Binny has been contemplating a “transition” for some time and they have been working on a “succession plan”, which has now been accelerated.
Kalyan Krishnamurthy will continue to be CEO of Flipkart, Walmart said.
“Ananth Narayanan will continue providing great leadership as CEO of Myntra and Jabong, and will report into Kalyan. Sameer Nigam will continue leading PhonePe as CEO. Both Kalyan and Sameer will report directly into the board,” it said.
In a $16 billion deal last May, Walmart bought nearly 77 per cent stake in the Indian e-commerce firm. Flipkart Group’s second co-founder Sachin Bansal was eased out of the company post the takeover. Sachin and Binny Bansal – who are not related – founded Flipkart as an online bookstore in 2007.