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Setback for Walmart as CEO of Flipkart quits over “personal misconduct”

In a major setback to Walmart’s (WMT) Indian operations, the CEO of its recently purchased unit Flipkart has stepped down following allegations of “serious personal misconduct.” Binny Bansal, also the co-founder of the Indian e-commerce giant formed in 2007, has strongly denied the allegations.

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“While the investigation did not find evidence to corroborate the complainant’s assertions against Binny, it did reveal other lapses in judgment, particularly a lack of transparency, related to how Binny responded to the situation,” the company said.

The probe stems from a sexual harassment allegation a few years ago, Reuters reported citing a person familiar with the matter.

Kalyan Krishnamoorthi, who heads the company’s core e-commerce operations, will now oversee the rest of the operations as well, which includes apparel websites Jabong and Myntra.

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Walmart had purchased 77% stake Flipkart in May for $16 billion, in its biggest-ever acquisition to fend off competition from rival Amazon (AMZN). Flipkart’s other co-founder, Sachin Bansal, had left the company immediately following the acquisition.

Walmart had earlier stated that it plans to publicly list the Indian unit, which had reported revenue of $2.8 billion in 2017, in another four years. Speculations were rife that the big box retailer was mulling a management rejig, but the latest developments are expected speed-up the process.

 

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