Flipkart CEO Binny Bansal Resigns

Hello, everyone! As you’ll know in the previous article the new Google Data Search engine was the focus. The new search engine allows users to gain better access to open source data. This allows users to interact better with open source data. To know more about the same, please click here. Today, the article is all about Flipkart and it’s Chairman and group CEO, Binny Bansal.

About the E-Commerce Giant Flipkart

Flipkart is one of the biggest electronic commerce (E-commerce) company based in Bengaluru, India. Founded by Sachin Bansal and Binny Bansal in the year 2007, the company has come a long way. The company initially started off with selling only books before expanding to all sets of product categories. It dominated the fashion industry by acquiring Myntra and Jabong.




The e-commerce giant also owns a mobile payment system which works on the Universal Payments Interface (UPI) called as PhonePe. Recently in August 2018, Walmart bought the majority stakes in the company which were 77% for USD $16 billion. While the deal took place, one of the founder Sachin Bansal sold all the stakes to Walmart and left the company.

Binny Bansal took charge and was responsible for handling the operations along with the CEO, Kalyan Krishnamurthy and other team members.

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Binny Bansal’s Resignation from Flipkart

binny_bansal
Fig. 1: Binny Bansal

On November 13th, 2018, Binny Bansal stepped down as the chairman and group CEO of Flipkart. This decision took place as there were allegations of personal conduct on Binny Bansal. Shocked by the allegations, the man decided to step down from the organization that he and his partner Sachin Bansal.

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 read.

flipkart_statement
Fig. 2: Statement has given by Walmart

Although having this done, Binny Bansal will be part of the board member of the group which is now Walmart owned. He will also continue to have the large shareholder in the company.



Following the allegations on him, Binny Bansal stated that he is stunned by the allegations. “These have been the 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 to the employees.

The email that Binny Bansal had sent is addressed below:

Binny Bansal Last Letter to Flipkart Employees

“Dear Flipkart Family,

Since co-founding Flipkart with modest resources in 2007, the journey we have embarked on together has been arduous and rewarding, culminating with the fantastic news of our partnership with Walmart earlier this year. They have been great partners and I am optimistic about our future together.

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. However, my decision to step down has been accelerated by certain personal events that have taken place in the recent past.

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. The allegations left me stunned and I strongly deny them. The investigation, however, did bring to light lapses in judgment, particularly a lack of transparency, related to how I responded to the situation. 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.

I will continue to be a large shareholder in the company and will continue to serve as a member of the Board of Directors.




I am convinced that the company is in great hands with our experienced leaders – Kalyan, Ananth and Sameer.  They have done an exceptional job running the businesses for many years now and with the support of Walmart that I have experienced, will continue to lead the company to even greater successes in the future.

Thank you for all the goodwill that you’ve shown towards me over the years. I’m grateful to have had the opportunity to help get us to where we are today. I look forward to seeing Flipkart scale greater heights in the coming years.

Thank you,

Binny”

Kalyan Krishnamurthy, CEO of Flipkart, will continue to lead the company with the added responsibility of overseeing the two subsidiaries — Myntra and Jabong — and will report directly to the board. Ananth Narayanan, CEO of Myntra and Jabong, will now report to Krishnamurthy, while Sameer Nigam, CEO of payments subsidiary PhonePe, will report to the board.

                       

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Author: Akshay Rakesh Toshniwal

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