Flipkart's Binny Bansal Resigns After Probe Into Allegation of "Serious Personal Misconduct"

Flipkart Group CEO Binny Bansal resigns with immediate effect

The CEO of the Indian e-commerce giant that Walmart bought a $16 billion stake in has resigned amid an allegation of personal misconduct

As per Walmart's press release, Binny Bansal has denied all allegations of personal misconduct.

Neither Bansal, who has been chief executive of the Flipkart Group since January of previous year, nor his representatives could be reached for comment. American giant Walmart Inc had bought 77% stake in Flipkart in May this year. The company focused early on mobile phones, and in 2016 became the first app in India to reach 50 million users.

Binny Bansal and Sachin Bansal -who are not related - founded Flipkart, India's largest online retailer, in 2007.

Bansal said these have been "challenging times" for him and his family, and in light of these circumstances, he felt it was best to step away as chairman and Group CEO. "Nevertheless, we had a responsibility to ensure the investigation was deliberate and thorough", said a Walmart spokesperson.

Walmart said it would continue to invest in the homegrown ecommerce company.

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.

A media report in September had suggested that Walmart was considering replacing Binny Bansal.

Walmart has said it may float Flipkart publicly within the next four years and Bansal's departure follows that of co-founder and former Amazon colleague Sachin Bansal, who left when the deal was sealed.

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The investigation concluded recently and Binny Bansal informs Flipkart associates this morning about his decision to leave the company, Walmart added. He strongly denies the allegation. His resignation is effective immediately following an investigation by an independent law firm.

The details of the complaint shared against Bansal were not revealed by Walmart, but this marks the exit of both the co-founders of Flipkart.

Kalyan Krishnamurthy, now chief of Flipkart's namesake division, will report directly to the board, Walmart said.

Sachin Bansal, who was the other co-founder of Flipkart had already sold his 5.5% stake amounting to $1 billion, and have made the exit.

The board said there will not be changes to the existing structure, and Kalyan Krishnamurthy will continue to be the CEO of Flipkart group entities. "Both Kalyan and Sameer will report directly into the board", Walmart added in its statement.

According to reports, Kalyan Krishnamurthy could be roped in as the next CEO of Flipkart.

Flipkart, Myntra, Jabong and PhonePe will continue to operate as separate business units.

"As we look ahead, we have full confidence in the strength and depth of leadership across the company".

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