Flipkart CEO resigns amid ‘misconduct’ allegations
Another retail CEO is coming under fire based on allegations that coincide with the far-reaching #MeToo movement.
On Tuesday, Binny Bansal announced his resignation as CEO of Flipkart Group, effective immediately. Despite being described as “an important part of Flipkart since co-founding the company,” the chief executive is the subject of an independent investigation by Flipkart and Walmart into an allegation of “serious personal misconduct.”
While the probe did not find evidence to corroborate the complainant’s assertions against Bansal, “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,” according to a joint statement from both companies. Bansal, who has been contemplating a transition for “some time,” denies the allegation.
Going forward, Kalyan Krishnamurthy, who is currently CEO of the company’s Flipkart division, will expand his responsibilities and oversee additional Flipkart businesses, including apparel sites Myntra and Jabong. Ananth Narayanan will continue as CEO of Myntra and Jabong, and will report into Krishnamurthy. Sameer Nigam will continue as CEO for PhonePe, Fxipkart’s financial technology company, as CEO. Both Krishnamurthy and Nigam will report directly into the board.
“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,” the statement said.
Walmart purchased Flipkart in a $16 billion deal in August, a move that made the discount giant the largest shareholder in the company with a 77% share. It was the discounter’s largest acquisition to date.
On Tuesday, Binny Bansal announced his resignation as CEO of Flipkart Group, effective immediately. Despite being described as “an important part of Flipkart since co-founding the company,” the chief executive is the subject of an independent investigation by Flipkart and Walmart into an allegation of “serious personal misconduct.”
While the probe did not find evidence to corroborate the complainant’s assertions against Bansal, “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,” according to a joint statement from both companies. Bansal, who has been contemplating a transition for “some time,” denies the allegation.
Going forward, Kalyan Krishnamurthy, who is currently CEO of the company’s Flipkart division, will expand his responsibilities and oversee additional Flipkart businesses, including apparel sites Myntra and Jabong. Ananth Narayanan will continue as CEO of Myntra and Jabong, and will report into Krishnamurthy. Sameer Nigam will continue as CEO for PhonePe, Fxipkart’s financial technology company, as CEO. Both Krishnamurthy and Nigam will report directly into the board.
“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,” the statement said.
Walmart purchased Flipkart in a $16 billion deal in August, a move that made the discount giant the largest shareholder in the company with a 77% share. It was the discounter’s largest acquisition to date.