Flipkart Co-founder and CEO, Binny Bansal on Tuesday resigned following an allegation of ‘serious personal miscount’. In a letter to Flipkart employees, Bansal wrote that claims of ‘serious personal misconduct’ have left him ‘stunned’ and he ‘strongly’ denies them.
Bansal was anyway planning to step away at the right time from an operating role at Flipkart Group, and he intended to continue as CEO for a few more quarters after Walmart buyout.
Yesterday, Walmart stated that Bansal’s decision comes right after an independent investigation to look into the allegations of misconduct, which according to Bansal were ‘uncorroborated ‘ and ‘particularly a lack of transparency’. According to YourStory, people familiar with the matter said that Bansal was sent on “garden leave” for a few weeks.
“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,” wrote Bansal in his letter.
While Bansal resigned with immediate effect and will not be a group CEO anymore, he will still continue to be a large shareholder in the company and will continue to serve as a member of the Board of Directors.
Here’s a copy of Binny Bansal’s letter (via YourStory) to Flipkart employees:
Dear Flipkart Family,
Since co-founding Flipkart with modest resources in 2007, the journey we have embarked on together has been arduous and rewarding, culminating with the fantastic news of our partnership with Walmart earlier this year. They have been great partners and I am optimistic about our future together.
For some time, I have been mulling over the right time to step away from an operating role at Flipkart Group.
My plan was to continue in my current role for a few more quarters to continue the transition after closing the deal with Walmart. However, my decision to step down has been accelerated by certain personal events that have taken place in the recent past.
These events relate to a claim of serious personal misconduct made against me, which was uncorroborated after a thorough investigation completed by an independent law firm. The allegations left me stunned and I strongly deny them. The investigation, however, did bring to light lapses in judgment, particularly a lack of transparency, related to how I responded to the situation. 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.
I will continue to be a large shareholder in the company and will continue to serve as a member of the Board of Directors.
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.
Thank you for all the goodwill that you’ve shown towards me over the years. I’m grateful to have had the opportunity to help get us to where we are today. I look forward to seeing Flipkart scale greater heights in the coming years.