In a dramatic turn of events, co-founder of Flipkart Binny Bansal chose to step down from his position as CEO of the e-retailer, US retail giant Walmart said in a regulatory filing on Tuesday.
In a dramatic turn of events, co-founder of Flipkart Binny Bansal chose to step down from his position as CEO of the e-retailer, US retail giant Walmart said in a regulatory filing on Tuesday. The decision followed an independent investigation into an allegation of ‘serious personal misconduct’.
With Bansal’s exit, both founders of the iconic firm will no longer be associated with it. Sachin Bansal had stepped down from his position as group chairman of Flipkart post-Walmart’s acquisition of the company in May.
While the investigation failed to throw up any conclusive 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, the SEC filing said, adding that “because of this, we have accepted his decision to resign”.
In May, Walmart acquired a 77% stake in the Bengaluru-headquartered Flipkart for $16 billion, valuing the start-up at $21 billion. It was the largest-ever deal for the Bentonville–headquartered retailer and one which would help it compete with Amazon in India.
Among the investors who sold out was Sachin Bansal, who with Binny had built Flipkart, the poster-boy of India’s e-commerce space. Kalyan Krishnamurthy, believed to be investor Tiger Global’s choice to run the operations, will continue to be CEO of Flipkart, which will now include Myntra and Jabong.
“Earlier on Tuesday, 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,” the SEC filing from Walmart noted.