Flipkart CEO and Binny Bansal on Tuesday resigned with immediate effect, following an investigation into alleged “serious personal misconduct” even as he denied the allegation.
In a statement, Walmart stated that his resignation is accepted with immediate effect.
The company stated that 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 judgment, particularly a lack of transparency, related to how Binny responded to the situation. Because of this, we have accepted his decision to resign," states the company.
Walmart bought a 77% stake in Flipkart in May and the company made Bansal as Flipkart Group CEO and Kalyan Krishnamurthy as the CEO.
Flipkart, which will now include Myntra and Jabong, was founded by Sachin Bansal and Binny Bansal in 2007. Sachin has already quit the company after the Walmart takeover.
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, the company said.
"Binny has been contemplating a transition for some time and we have been working together on a succession plan, which has now been accelerated," it added.
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 being CEO of Myntra and Jabong and will report into Krishnamurthy. Sameer Nigam will continue leading PhonePe as CEO. Both Kalyan and Sameer 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 company added.
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