Binny Bansal Resigns from Flipkart Board, Citing Clash with Emerging B2B Startup

Binny Bansal Resigns from Flipkart Board, Citing Clash with Emerging B2B Startup

Flipkart co-founder Binny Bansal has stepped down from the Board of the Walmart-owned e-commerce firm he founded with Sachin Bansal sixteen years ago, capping the end of an era.

The announcement of Binny's resignation coincides with his relaunch in the e-commerce industry, having sold his remaining stake in the company months earlier. His other co-founder, Sachin Bansal, exited Flipkart a few years ago and is now building a fintech venture, Navi.

Bansal, who co-founded Flipkart in 2007 with Sachin Bansal, informed the Board about his resignation earlier this week.

“I am proud of the Flipkart Group’s achievements over the past 16 years. Flipkart is in a robust position, with a strong leadership team and a clear path forward, and with this confidence, I have decided to step aside, knowing the company is in capable hands. I wish the team the best as they continue to transform experiences for customers, and I remain a strong supporter of the business,” Bansal said.

At the same time, Leigh Hopkins, Executive Vice President of International Strategy and Development and Regional CEO – of Asia and Walmex and Flipkart Board Member, said, “Being the company's founder, Binny offers a special blend of expertise and experience. Since Walmart's investment in 2018, we have been fortunate to have him stay on the Board, and we have immensely benefited from his advice and perspective."

Kalyan Krishnamurthy, CEO and Flipkart Board Member, who has been running operations for years now, said, “We are thankful for Binny's partnership over the past several years as the Flipkart Group has grown and entered new businesses. His insights and deep expertise of the business have been invaluable to the Board and company.”

In August of last year, Binny Bansal, US-based Tiger Global Management, and Accel, one of the company's original investors, sold their shares to Walmart, thereby exiting the e-commerce behemoth. Since the beginning of the business, Binny is report to have earned between $1 and $1.5 billion from his ownership position.

Five years have passed since Walmart paid an astounding $16 billion to acquire a 77 percent share in Flipkart in May of 2018. A five-year non-compete clause included in the Walmart agreement expired in 2023, allowing Binny Bansal to resume his e-commerce ventures.

His new venture, OppDoor, will help e-commerce firms expand operations globally by providing them with end-to-end solutions.

E-commerce businesses aiming to grow into new markets by utilizing the network of leading platforms like Amazon and others will receive design, product, human resource, and other backend support from it. At first, OppDoor will concentrate on e-commerce businesses in the US, UK, Canada, Mexico, Singapore, Japan, and Australia.

Binny is a board member of the massive payments company PhonePe and is also a busy angel investor. In 2007, Flipkart started out as an online bookstore run out of an apartment in Bengaluru.

Flipkart's valuation has surged to approximately $38 billion, marking a significant upturn. However, the e-commerce giant persists in facing financial losses. In the financial year 2023, Flipkart recorded a commendable 9.4% rise in consolidated net total income, reaching ₹56,012.8 crore compared to ₹51,176 crore in the preceding fiscal year. 

Despite this increased income, Flipkart's consolidated losses expanded to ₹4,890.6 crore in FY23, showcasing a notable escalation from ₹3,371.2 crore in the previous fiscal year. This financial data underscores the complex landscape the company navigates, with growth in income offset by widening losses. 

As Flipkart continues its operations, these financial dynamics illuminate the challenges and opportunities inherent in the competitive e-commerce sector.