Flipkart CEO Binny Bansal stepped down from his position following allegations of “serious personal misconduct”, Walmart Inc. said in a press release on Tuesday.
Flikpart, co-founded by Sachin Bansal and Binny Bansal in 2007, is the largest Indian e-commerce company with a 40% market share in Indian online retail industry as of 2017. Sachin Bansal left the company after the US retail giant Walmart acquired 77% stake in May for USD 16 billion as Binny Bansal continued as the Group CEO of Flipkart Group.
"While the investigation did not find evidence to corroborate the complainant's assertions against Binny, it did reveal other lapses in judgment, particularly a lack of transparency, related to how Binny responded to the situation." Walmartsaid. "Because of this, we have accepted his decision to resign."
What the future holds for Flipkart
The statement also disclosed an ongoing succession plan before the incident and Binny’s resignation has expedited the process. Kalyan Krishnamurthy, who currently heads Flipkart’s e-commerce platforms, would don the CEO hat of Flipkart. Sameer Nigam, vice president, marketing, Flipkart, will continue at the helm of PhonePe, Flipkart’s mobile payment company. And Ananth Narayanan, who leads Flipkart’s separate retail platforms Myntra and Jabong, will report to Kalyan.
The sudden, unceremonious exit of Binnywill throw a spanner in the works for Walmart as its gears up to take on e-commerce giant Amazon in India.