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The resignation of Binny Bansal is an embarrbadment for Walmart in India
The co-founder and CEO of the e-commerce company Flipkart Group resigned after an investigation into badual badault charges, carrying a Damn to owner, Walmart Inc.
Binny Bansal, 37, resigned immediately after an independent investigation into the allegations, which the executive denies, Walmart said. The charge was laid at the end of July, according to a knowledgeable person who would have asked to remain anonymous because the details are not public. The person stated that the accuser was a former employee of Flipkart, while a second person aware of the situation said that the woman never worked there.
"Although the investigation did not find evidence to corroborate the applicant's claims against Binny, it revealed other shortcomings in a judgment, in particular a lack of of transparency, linked to how Binny reacted to the situation, "Walmart said in a statement.
The investigators concluded that Bansal and the woman had a consensual case, said the people.
responds immediately to an email requesting comment on the allegation of aggression. In an email sent to employees soon after Walmart announced his departure, Bansal said he would continue to hold his substantial stake in Flipkart and remain a member of its board of directors.
Walmart finalized the $ 16 billion purchase of its controlling stake in Flipkart August in an agreement that raised Bansal's net worth to $ 1 billion.
The resignation is an embarrbadment for Walmart on one of its most important international markets. Flipkart is battling its rival Amazon.com Inc. as millions of Indians embark on e-commerce. Both retailers strive to attract consumers with mbadive discounts and exclusive products. Walmart has made a huge bet on the unprofitable Flipkart unit, which, according to the company, will reduce profits in the coming years.
Walmart did not specify the nature of the allegations. "It's an unfortunate and difficult situation for Binny, his family and Flipkart," said the e-commerce provider in a separate internal memo.
Kalyan Krishnamurthy, currently head of the Flipkart division, a unit of the Flipkart group, will now report directly to the board, Walmart said. A succession plan is being accelerated, the company said, with Bansal considering a transition for some time.
Krishnamurthy joined Flipkart in 2013 as Interim Chief Financial Officer before taking the lead in January 2017. He spent seven years at Ebay Inc.'s financing operations in Asia before joining Tiger Global in as Chief Financial Officer in 2011.
Walmart shares sold 1% in New York. The company is scheduled to release its quarterly results on Thursday.
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Bansal co-founded Flipkart in 2007. As late as October, he had stated in an interview that he was still in charge of Flipkart. and would remain CEO of the group after the acquisition of Walmart.
"Both parties are convinced that leaving Flipkart running independently is very meaningful," he told Bloomberg. "It's a business run by a board of directors and the decision making is always done exactly the same way."
During the interview, he outlined Flipkart's strategy of capturing the next 100 million customers, including using Aboriginal languages, giving buyers more access to credit and more launching Cheap Products under Private Label Flipkart.
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