Walmart may wipe out Flipkart Group CEO post as Binny Bansal exits

NewsBharati    16-Nov-2018
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New Delhi, November 16: Walmart Inc.-controlled Flipkart, which saw its co-founder and group chief executive Binny Bansal resign earlier this week over an investigation into “personal misconduct”, may abolish the position of Group CEO and retain the new structure it put in place after Bansal’s exit, said two people aware of the developments.


 

A key factor driving the decision is the likely spinning-off of Flipkart’s payments arm PhonePe into an independent company, said the people cited above, requesting anonymity. PhonePe will remain majority-owned by Walmart but will raise funds from other investors, the people said. Both Tiger Global Management and Tencent Hodings Ltd, which are shareholders in Flipkart, have expressed interest in funding PhonePe, they said.

PhonePe will seek at least one external investor to secure the large amount of capital it needs to take on Paytm, the person added. Paytm is India’s top digital payments firm.

As part of the new structure, PhonePe co-founder and CEO Sameer Nigam is reporting directly to the board of the Flipkart Group—like Flipkart CEO Kalyan Krishnamurthy.

“PhonePe wants to retain its independence from the group and wants to have the option of raising funds from outside strategic investors. Walmart has given them the green light to do so,” said one of the two people cited above.