Flipkart CEO And Co-founder Binny Bansal Resigns After Serious Misconduct Claims

On November 13^th, Flipkart announced that Binny Bansal, its CEO, has resigned, effective immediately.

Previously, there was an investigation into accusations of “serious personal misconduct” which Bansal denied angrily.

Binny Bansal

In its press statement, Walmart said that Bansal decided to resign after an external investigation was conducted on behalf of Walmart and Flipkart focusing on an accusation of serious personal misconduct. Even though Bansal denies the accusation insistently, the companies had to ensure a deliberate and thorough investigation.

Walmart doesn’t reveal if the accusation was of sexual harassment or any other crimes. What it did say is that although no evidence was found to confirm the allegations, the investigation uncovered some other details to be considered, especially how unclear it is in the way Bansal dealt with the situation.

As to the announcement, Kalyan Krishnamurthy, CEO of Flipkart, will continue working in his present position, but he will also be Jabong and Myntra head. Ananth Narayanan will remain as Jabong and Myntra CEO, but he will have to report to Krishnamurthy and Krishnamurthy will report to the board directly.

On Tuesday, Binny Bansal sent an email to Flipkart employees. In his mail, the 37-year-old Flipkart co-founder said he was worried the incident would distract the team at the firm. In terms of the accusation, Bansal stated that he was stunned and strongly denied the claims against him.

According to Walmart, Bansal had already prepared for his resignation, hence the company had preparations for this. However, his resign was so sudden that the firm has to speed up the plan.

Earlier this year, Sachin Bansal, Flipkart’s co-founder, also left the group after he had sold his stake to Walmart.

Sachin Bansal (left) and Binny Bansal (right)

In 2007, Binny Bansal and Sachin Bansal founded Flipkart. At first, the company focused on selling books, but then expanded to other products like electronics and fashion. They have been an important part of the e-commerce firm.