Flipkart CEO Binny Bansal resigns after allegations of ‘personal misconduct’
While the probe did not find evidence to corroborate complainant’s assertions against Binny, it did reveal other lapses in judgement, particularly a lack of transparency, Walmart said in a statement.
Published - 13-November-2018
Flipkart's Co-founder & Group CEO Binny Bansal has resigned from the company with immediate effect following an internal investigation conducted by Flipkart and its parent firm Walmart into an allegation of “serious personal misconduct.” Though the company has not provided any detail about the nature of the allegation, some media reports suggest that it pertains to sexual misconduct.
Bansal (37) has, however, strongly denied the allegations, Walmart has said in a statement issued on Tuesday, according to media reports.
The statement reportedly read, "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,” the statement added.
The statement further read, “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."
Bansal had stayed on at Flipkart while his other co-founder Sachin Bansal left the company after Walmart acquired majority ownership in the online retailer earlier this year.