Walmart Says Flipkart CEO Has Resigned After Misconduct Investigation

Marco Green
November 13, 2018

Flipkart's co-founder & group CEO Binny Bansal has called it quits.

Bansal stepped down from the company with immediate effect and Kalyan Krishnamurthy will continue to serve as the CEO.

Since Walmart paid $16 billion for a roughly 77-per-cent stake in Flipkart in May, Indian media have speculated Walmart was planning changes at India's biggest online shopping platform as it strives to compete with Amazon. Sachin had left the company after the Walmart deal as Walmart favoured making Binny the CEO and sidelined Sachin completely.

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

CNBC-TV18 quoted Walmart sources as saying that they first learned about the allegation of misconduct in late July and that the allegation was not made by an employee of Flipkart.

The investigation, which was conducted on behalf of Flipkart and Walmart, did not find evidence corroborating the accuser's claims but did find Bansal to have made lapses in judgement, including a lack of transparency, in his response to the situation, the release said.

It is not yet clear what the nature of the allegation is, but news agency Reuters says the Bansal's resignation stemmed from an allegation of sexual assault that dates back a few years. "For Flipkart to keep succeeding, it is crucial for our teams to thrive, and we will continue to do everything possible to ensure you are given the opportunity to do just that", he added.

While the Walmart and Flipkart statement doesn't talk about what exactly happened, what were the allegations and what sort of the personal misconduct was investigated, there is talk that someone within the company had complained against Binny. He also told the ET that he would continue to hold Flipkart shares and would continue to be a member of board of directors.

Kalyan Krishnamurthy will continue to be CEO of Flipkart, Walmart said.

Walmart said Binny Bansal had been contemplating a transition for some time and that the companies had been working together on a succession plan, which had now been accelerated.

Walmart shares were little changed in premarket trading in NY.

Other reports by Click Lancashire

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