The CEO of the Indian e-commerce giant that Walmart bought a $16 billion stake in has resigned amid an allegation of personal misconduct
Flipkart Group CEO Binny Bansal has resigned following "an allegation of serious personal misconduct," according to a press release.
The release did not elaborate on the allegation but said Bansal "strongly denies" it.
An independent study did not corroborate the allegation but found Bansal made lapses in judgment, according to the release.
In May, Walmart agreed to buy a 77% stake in Flipkart for $16 billion.
Flipkart Group CEO Binny Bansal has announced his resignation, effective immediately, following an independent investigation into "an allegation of serious personal misconduct," Walmart said in a press release out Tuesday morning.
The release did not elaborate on the allegation but said Bansal "strongly denies" it.
The investigation, which was conducted on behalf of Flipkart and Walmart, did not find evidence corroborating the accuser's claims but did find Bansal to have made lapses in judgement, including a lack of transparency, in his response to the situation, the release said.
Kalyan Krishnamurthy will remain the CEO of Flipkart, which now includes the Indian fashion and lifestyle e-commerce portal Myntra and Jabong, which will continue to operate as a separate platform within Flipkart Group, according to the release. Myntra and Jabong's CEO will report to Krishnamurthy, the release said.
In August, Walmart acquired a 77% stake in Flipkart for $16 billion in an effort to keep pace with Amazon in India.
Walmart shares were little changed following the news. They were up 5% this year through Monday.
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