India’s biggest e-commerce website Flipkart has recently faced a crucial moment when its co-founder Binny Bansal resigned from the organization on 13th November 2018.
The organization was established in 2007 was Sachin Bansal and Binny Bansal. While the former completely quitted Flipkart selling his 5.5% stake in May, the latter just gave a resignation and Flipkart accepted it releasing him from the CEO designation on 13th November 2018.
However, unlike Sachin Bansal, Binny did not completely break his relation with Flipkart and is still a board member with 5% stake.
Reason for Binny Bansal’s resignation from Flipkart
After 77% of Flipkart’s stake got occupied by Walmart in 9th May 2018, Sachin Bansal quitted his position as CEO, and now Binny Bansal gave his resignation due to allegations of personal misconduct against him.
As per Flipkart sources, the claim against Binny was made in July by an ex-employee of Flipkart and since then a thorough investigation was conducted on behalf of Walmart and Flipkart to seek into the details of this issue and followed by the investigation procedure, the resignation of Binny Bansal was announced by Walmart on 13th November 2018 which came as shocking news for everyone.
However, no proper evidence was found against Binny neither it was disclosed what kind of personal misconduct allegation was made against him. While Binny on his part completely denied such allegations and even stated that the judgment lacked transparency towards him and created a hard situation for his family and also Flipkart.
On such unclear fronts, Flipkart has to accept his resignation and the entire responsibilities of CEO have been currently given to Kalyan Krishnamurthy by Walmart. Walmart even stated that Binny was thinking about quitting from CEO position unofficially from a period of time and now thinking about the risk factor he finally gave his thought a proper action and hence Flipkart released him immediately.
Current Scenario of Flipkart
Binny Bansal’s sudden resignation after working so many years in Flipkart as its CEO and Founder was not an easy situation for the organization but as per the judgment of the boards the decision has been taken that its operating and management structures will remain unaffected from the situation and will continue serving audiences in the same way.
It has been also declared that from now on, Jabong and Myntra will also run under Flipkart but in separate platforms as they are. The CEO of Jabong and PhonePe Mr. Sameer Nigam and the CEO of Myntra Mr. Ananth Narayan will report to Mr. Kalyan Krishnamurthy the current CEO of Flipkart while Mr. Kalyan will direct report to the boards.
Viewpoint of Binny Bansal for Flipkart’s Future
When a conversation was done with Binny Bansal about his sudden resignation, he told that his decision is only for organization’s betterment. As per his analysis, Flipkart is going to do great in the next upcoming 30 years with plenty of business and financial opportunities. He also stated that with the financial market getting digitalized over time, Flipkart will play a major role in it and he is glad to visualize the bright future of his organization.
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