Co-founder and CEO of Walmart-owned Flipkart, Binny Bansal has resigned, effective immediately.
Flipkart’s CEO has reportedly stepped down from his position with India’s biggest online marketplace after an independent investigation was held on behalf of Walmart and Flipkart into allegations of “serious personal misconduct”.
According to a statement released by Walmart, Bansal has denied the allegations and the investigation didn’t find any evidence to corroborate the complainant’s assertions. However, Walmart does say that Flipkart’s CEO had exhibited lapses in judgment, as well as a lack of transparency. No details have been revealed around what the “allegations” made against Bansal were.
“Binny has been contemplating a transition for some time and we have been working together on a succession plan, which has now been accelerated,” Walmart said.
Walmart originally purchased a 77 percent stake in the Indian marketplace for US$16 billion in August this year, which for some, was seen as a risky move because of the steep price point and logistical and regulatory hurdles in India. While Walmart has retained a calm exterior, spectators have questioned whether the departure of Flipkart’s remaining founder and local management will cause issues for Walmart and its investment moving forward.
For the time being, Flipkart Group will be without a chief and its remaining co-founder, however, Walmart says it will still be business as usual. According to the US-based department store, Kalyan Krishnamurthy will continue to as the CEO of the online marketplace, while Ananth Narayanan will continue on as CEO of fashion sites, Myntra and Jabong, and Sameer Nigam as CEO of PhonePe.
“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.
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