BENGALURU: A few months after the buyout of India's e-retail poster boy Flipkart by the US-retail giant Walmart, Binny Bansal the Group Chief Executive of the Flipkart Group has resigned with immediate effect. The resignation of Mr Bansal follows an independent investigation done on behalf of Flipkart and Walmart into an allegation of 'serious personal misconduct.'
The joint statement issued by Walmart and Flipkart did not mention the nature of the misconduct or what was the complaint against the co-founder of Flipkart.
According to a press statement published on by Flipkart's parent company's website late on Tuesday, "Binny Bansal announced his resignation as CEO of Flipkart Group, effective immediately."
Meanwhile, in an email sent to Flipkart employees, Binny Bansal denied the allegations and also said these may become a distraction for the company and the team which was the reason for the resignation.
"The allegations left me stunned and I strongly deny them. These have been challenging times for my family and me. I am concerned that this may become a distraction for the company and the team. In light of these circumstances, I feel it is best to step away as Chairman and Group CEO," Bansal wrote in his email.
Further, Bansal said, he will continue to be a large shareholder in the company and will continue to serve as a member of the Board of Directors. As per reports he holds around 5% stake in the company which he co-founded in 2007.
The investigation conducted by an independent law firm did not find any evidence or lapses to corroborate the complainant but revealed other lapses in judgment particularly lack of transparency.
"Nevertheless, we had a responsibility to ensure the investigation was deliberate and thorough. 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. Because of this, we have accepted his decision to resign," Walmart said.
In his email, Binny also said, "For some time, I have been mulling over the right time to step away from an operating role at Flipkart Group. My plan was to continue in my current role for a few more quarters to continue the transition after closing the deal with Walmart."
The statement from Walmart also hinted at Bansal's plan of transition from his current role in the company. "Binny has been contemplating a transition for some time and we have been working together on a succession plan, which has now been accelerated."
Sachin Bansal and Binny Bansal after their stint in Amazon had founded Flipkart which became the face of Indian e-retail business. Sachin Bansal had stepped down from the company in May after the acquisition of Flipkart by Walmart for $16 billion.
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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. Ananth Narayanan will continue as the CEO of Myntra and Jabong and will report into Kalyan. Sameer Nigam will continue leading PhonePe as CEO. Both Kalyan and Sameer will report directly into the board.
Walmart statement on Binny Bansal's departure:
Earlier today, 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.
His decision follows an independent investigation done on behalf of Flipkart and Walmart into an allegation of serious personal misconduct. He strongly denies the allegation. Nevertheless, we had a responsibility to ensure the investigation was deliberate and thorough. While the investigation did not find 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. Because of this, we have accepted his decision to resign.
Binny has been contemplating a transition for some time and we have been working together on a succession plan, which has now been accelerated. 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. Ananth Narayanan will continue providing great leadership as CEO of Myntra and Jabong, and will report into Kalyan. Sameer Nigam will continue leading PhonePe as CEO. Both Kalyan and Sameer will report directly into the board.
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.
As we look ahead, we have full confidence in the strength and depth of leadership across the company. We remain committed to investing for the long-term and are supportive of the leadership team’s desire to evolve into a publicly-traded company in the future.