Former Flipkart group CEO Binny Bansal, who resigned from the company last month, he now reportedly is negotiating with Walmart to pay him an amount of $100 million (About Rs 700 crore) as part of a contract he has entered into with Walmart.
Binny Bansal, who co-founded the ecommerce company along with Sachin Bansal, still holds around 4.5% stake in Flipkart, which is estimated to be worth $850 million. In terms of the arrangement, Walmart would have paid him for approximately half his holding by 2020. But in view of his resignation from the company he is eligible to get $100 million now and the remaining in 2020. These details have been reported by Mint, but not confirmed by either Bansal himself or by Flipkart.
As already reported, of the two founders, Sachin Bansal left the company due to differences with the other Directors on the Flipkart Board before the Walmart takeover.
But Binny Bansal’s abrupt exit as Chairman and Group CEO stunned many. Strangely Walmart disclosed to the media that a complaint was received against Binny Bansal alleging personal misconduct and they let him go due to certain lapses in judgement.
The subsequent reorganization that Walmart did after Bansal’s exit also raised many eyebrows. The company practically merged the operations of the fashion verticals Myntra and Jabong into the main Flipkart setup by making the Flipkart CEO Kalyan Krishnamoorthy the head of these units and virtually shunting out the Myntra CEO Ananth Narayanan, who was operating independently. Narayanan subsequently resigned and so did many senior executives who were handling Myntra/Jabong. Many employees from the 2 fashion brands were asked to leave and its HQ shifted from Gurugram to Bangalore.
Binny Bansal, like his erstwhile partner Sachin will also be looking to remain in the startup ecosystem and is said to be backing Saikiran Krishnamurthy’s xto10x, a venture floated as a consultation and mentoring platform for startup entrepreneurs. Binny Bansal is likely to be the Non-Executive Chairman of this venture and make some investment as well.