Binny Bansal to stay on as Flipkart board member, continue as large shareholder, despite sudden exit
Despite Binny Bansal's unexpected exit from Flipkart, he will continue to serve on the board of the ecommerce company he co-founded with Sachin Bansal, and remain a larger shareholder in the online retailer, Binny wrote in an email to Flipkart employees.
Earlier today, Walmart said in a statement that Binny has resigned from the ecommerce company with immediate effect following an investigation into allegations of personal misconduct.
“The allegations left me stunned and I strongly deny them,” Binny wrote in an email.
“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,” he added.
In the same email, Binny also said he was planning to continue in his current role as Chairman and Group CEO of Flipkart for a few more quarters to continue the transition after closing the deal with Walmart.
In May, Walmart acquired a 77 percent stake in Flipkart for $16 billion, marking the largest ecommerce acquisition in the world. Following acquisition, co-founder Sachin Bansal exited the company, while Binny stayed on as Group CEO and Chairman.
In a statement earlier today, Walmart also said that Binny was considering the move for "some time" now. "Binny has been contemplating a transition for some time and we have been working together on a succession plan, which has now been accelerated," Walmart said in a statement earlier today.
Succession plan after Binny
The global retail giant said Flipkart continues to be in good hands, as it expressed confidence in the current leadership. Flipkart Chief Executive Kalyan Krishnamurthy, credited as the man behind the Flipkart buyout, will remain CEO of the company, which includes Myntra and Jabong continuing to operate as separate platforms within the Flipkart business, said Walmart.
“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,” Binney wrote in an email.
Walmart too expressed confidence in the current Flipkart leadership.
"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," Walmart said.
