Flipkart Co-Founder Binny Bansal, who stepped down from the company he set up 11 years ago, amid an investigation into “serious personal misconduct”, said that he was stunned by the allegations.
“These events relate to a claim of serious personal misconduct made against me, which was uncorroborated after a thorough investigation completed by an independent law firm. I am concerned that this may become a distraction for the company and the team, for which I am deeply sorry. In light of these circumstances, I feel it is best to step away as Chairman and Group CEO,” Bansal said in an email sent to Flipkart employees.
However, he maintained that he will continue to remain a large shareholder and board member of the now Walmart-owned firm.
Bansal, 37, has strongly denied the allegations. He has been contemplating a change for some time. He had chosen to continue in his role for a few more quarters to continue the transition after closing the deal with Walmart.
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 to the board.
Earlier, Walmart said in a statement that although the investigation “did not find evidence to corroborate” the allegations against Bansal, it did shed light on lapses in judgement, particularly a “lack of transparency” in Bansal’s behaviour.
Walmart has bought a 77 percent controlling stake in Flipkart and its high price tag caused the international retail firm to lower its earnings forecast for fiscal year 2019.
According to sources, the investigation started in July.
Meanwhile, the e-commerce giant is undergoing major appointments post acquisition by Walmart.
Recently, Walmart India’s corporate affairs head Rajneesh Kumar joined Flipkart as its chief corporate affairs officer. Kumar will look at public policy, corporate social responsibility and communications as part of his job.
Although the development coincides with Bansal’s exit from Flipkart, the two matters are not related and the firm confirmed that Kumar had joined the company on November 5. “While the move may not be related to Binny’s exit, it seems to be timed to ensure a better grip on things,” said one of the persons, who spoke on condition of anonymity.
Earlier, Walmart had moved several executives in departments including finance and compliance to Flipkart after completing acquisition of the company. Walmart’s mergers & acquisitions head Emily McNeal joined the Flipkart Group as senior vice president and group chief financial officer while Daniel De La Garza came on board as vice president and chief ethics & compliance officer. Grant Coad joined as general counsel and Dawn Ptak as vice president and group controller.
