Flipkart Group CEO Binny Bansal has resigned after an independent probe into an allegation of serious personal misconduct, Walmart said in a statement on November 13.
While Walmart did not specify the exact nature of the charges against Bansal, a top source told Moneycontrol that the development is related to a complaint from a female colleague a few months ago.
"Earlier today, Binny Bansal announced his resignation as CEO of Flipkart Group, effective immediately. 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," Walmart said in the statement.
"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. Nevertheless, we had a responsibility to ensure the investigation was deliberate and thorough. 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. Because of this, we have accepted his decision to resign," the statement read.
According to the source quoted above, the complaint had been made even before Walmart had acquired Flipkart. After the acquisition, the complainant reported the issue to Walmart which then set up an investigation committee.
Walmart, however, told Moneycontrol that the issue doesn't concern an employee or a colleague.
Kalyan Krishnamurthy will continue to be the CEO of Flipkart, which will now include Myntra and Jabong, continuing to operate as separate platforms within the Flipkart business.
Ananth Narayanan will remain CEO of Myntra and Jabong and report into Krishnamurthy. Sameer Nigam will continue to lead PhonePe as CEO. Both Krishnamurthy and Nigam will report directly into the board.
On May 13 earlier this year, global retail giant Walmart bought 77 percent in Flipkart for $16 billion, as it made an elephant-footed entry into India’s exploding e-commerce market.
Immediately after the deal, co-founder Sachin Bansal chose to sell his estimated 5 percent stake in the company for nearly $1 billion and exited the business completely. Binny though stayed on as the Chairman and Group Chief Executive. He too owns about 5 percent stake in the company.