Friday , May 14 2021

Flip chart aims to calm the nerves of employees after Binny Bansal's exit



One day after Binny Bansal resigned as Chief Executive Officer due to personal allegations of responsibility, Flipkart team managers are very committed to staffing to address their concerns and issues arising from the surprise development.

According to sources, various heads of the e-commerce giant have been involved with their teams to answer any questions and address concerns related to business and operations following Bansal's outcome.

Walmart – Flipkarts parent company – November 13 issued a statement saying Flipkart co-founder Binny Bansal had resigned as CEO.

The cryptic statement said that an independent investigation had been conducted against Bansal after allegations of "serious personal maladministration" but did not provide details of the type of misconduct and findings found by a global law firm.

It gave a clean chit to Bansal where he found that the probe "did not find evidence to confirm the complainant's allegations" against him.

According to several sources, the second time the issue against Bansal had been raised. They said that the issue was first flagged three years ago. However, it was not clear if any action was taken back then.

In July this year, the complainant – one associated with Flipkart and now independently – reached Walmart, after which the survey was established, they said.

The sources said Walmart – who had raised 77 percent of the shares in Bengaluru-based companies for a great deal of $ 16 billion – was upset that this development had not been revealed when the business talks were ongoing.

Binny, 37, has also strongly denied the allegations and said he was "stunned" by the allegations. He added that while he had fallen in the lead, he would continue to be a major shareholder and board member of the company which he founded 11 years ago with Sachin Bansal (who left Flipkart who sold all his share as part of the deal).

Binny had been appointed CEO in January last year. In his email to employees on November 13, Binny had said that he had been able to get in time to escape an operational role at Flipkart Group for some time.

"My plan was to continue in my current role for a few quarters to continue the transition after finishing the deal with Walmart. But my decision to go down has increased by some personal events that have occurred in the past past," he wrote in his email.

Binny's exit after that of co-founder Sachin Bansal (not related) has raised issues of leadership and action in the next few months for the company locked in intense battle with American rival Amazon.

Walmart has stated that Kalyan Krishnamurthy, current CEO of Flipkart Division and PhonePe (Flipkart Payment Arm) Sameer Nigam will report directly to the Board.


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