Thursday, 21 February, 2019

Flipkart CEO Binny Bansal Resigns Due To Investigation

Flipkart Group CEO Binny Bansal resigns with immediate effect Flipkart CEO Binny Bansal Resigns Due To Investigation
Nellie Chapman | 14 November, 2018, 08:03

The two men worked briefly for in India and started their business selling books before diversifying into other goods. "Flipkart badly needs "customer-driven mindset like Amazon" and "cost-driven execution like Walmart".

Cut to 2018, Sachin and Binny, the unrelated Bansals are no more at the top spot of the company that they founded. In its statement on Tuesday, Flipkart said that it had been working together with Bansal on a succession plan before the allegations of misconduct surfaced.

In statements posted on their respective websites, Flipkart and Walmart said that Bansal's resignation was effective immediately.

The co-founder and chief executive officer of Indian e-commerce company Flipkart Group resigned after an investigation into allegations of sexual assault, dealing a blow to owner Walmart Inc.'s ambitions in that country. He strongly denies the allegation. "Because of this, we have accepted his decision to resign", the company said in a statement", the statement added. While both Binny and Walmart are believed to have agreed to say nothing beyond their coordinated official statements, some old-timers at Flipkart feel the U.S. giant, which now owns 77% in the Bengaluru-headquartered company, has used an "old case" to assume total control of their new acquisition.

"The investigation could not corroborate the allegation".

The complainant worked in Flipkart and left the company in 2012, according to the sources.

It was for this particular reason that the company made a decision to accept Binny's resignation. "That was part of the deal... it really gelled well with us", he had said. Walmart and Flipkart's release do not answer such questions.

And, the legacy of Bansals inside Flipkart vanishes, forever.

Going forward, Kalyan Krishnamurthy will continue to be CEO of Flipkart, which will now include Myntra and Jabong, continuing to operate as separate platforms within the Flipkart business. "Both Kalyan and Sameer will report directly into the board", Walmart added in its statement.

The Flipkart release also speaks of it's ambition of becoming a publicly traded company in it's conclusion. I am concerned that this may become a distraction for the company and the team.

Walmart paid $16 billion for a roughly 77-percent stake in Flipkart in May. Richer than each of Infy's founders. The company is scheduled to report quarterly results on Thursday. He also told the ET that he would continue to hold Flipkart shares and would continue to be a member of board of directors. Would he get a chance to run a few errands or is this a full departure?

Months after Sachin Bansal exited from Flipkart, following its acquisition by the U.S. retail company Waltmart Inc in May, his close friend and Flipkart Group CEO Binny Bansal also stepped down from the company he co-founded in 2007.