(Image source from: The News Minute)
The electronics retail company Flipkart's Chief Executive Officer Binny Bansal on Tuesday has proclaimed his resignation from his position following an investigation into "serious personal misconduct."
Walmart, which recently acquired e-commerce major made the announcement stating that Binny's resignation comes on the back of 'recent events which risked becoming a distraction and Binny 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," a statement by Walmart said, "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," the company said in a statement.
Flipkart, founded by Sachin Bansal and Binny Bansal in 2007, after Walmart acquired 77 percent stake in it, Sachin stepped down from the firm. Binny Bansal stayed on and took over as CEO.
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In accordance with Walmart, Binny has been planning a transition for some time. Walmart, accompanied by Flipkart co-founder, was working on a succession plan, which has now been enhanced.
Kalyan Krishnamurthy, who joined Flipkart from Tiger Global in June 2016 and took over as its CEO replacing Binny Bansal in January 2017 will continue to be CEO of Flipkart, which will here and now comprise Myntra and Jabong, ongoing to function as separate platforms within the Flipkart business.
Ananth Narayanan, CEO of Myntra and Jabong will be reporting to Kalyan.
"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," Walmart added in its statement.
In spite of the claims, the particulars of which have not been revealed by the company, Walmart says that it will continue to remain invested in the company for the long-term.
"… and are supportive of the leadership team's desire to evolve into a publicly-traded company in the future," Walmart added, hinting towards a path to an Initial Public Offering (IPO).
Remarkably, Kalyan played a dynamic part in allowing the Walmart-Flipkart deal.
According to an Economic Times report, Walmart offered Krishnamurthy a retention bonus of about $2 million for staying on with the company for three years.
Binny Bansal has not yet commented on his resignation.
-Sowmya Sangam
