Binny Bansal is expected to use the payments from Walmart to invest in startups
Flipkart co-founder Binny Bansal is seeking a cash payout of $100 million from Walmart after he resigned as the Chairman and group Chief Executive Officer (CEO) from the e-commerce firm last month, according to a reportby Mint.
On November 13, Bansal stepped down as Flipkart’s CEO and Chairman following an independent probe into an allegation of serious personal misconduct.
As per Bansal’s contract, he would have received cash from Walmart for over half of his 4-4.5 percent stake in Flipkart that is worth over $850 million by August 2020, sources told the newspaper.
However, Bansal may receive an immediate, smaller payment of about $100 million following his resignation. The rest of the payout would be due to Bansal by August 2020, they added.
After the August 2020 payout, Bansal would continue to keep the remainder of his stock in Flipkart, the report suggests.
The news comes as the Flipkart co-founder is planning to launch a venture — xto10x Technologies — that will offer technology tools, and learning and consulting services to growth-stage startups that are looking to scale up.
Former McKinsey consultant Saikiran Krishnamurthy is said to be joining Bansal in his new venture. Krishnamurthy was also a part of Flipkart, where he headed its supply chain unit eKart from 2015 to 2017.
Binny Bansal is said to use the payments from Walmart to invest in startups. He has already invested in a number of startups including SigTuple, Roposo and Ather Energy, according to Tracxn.
Media report suggests that Krishnamurthy could be the CEO of xto10x Technologies, while Bansal could be the Executive Chairman.
Binny Bansal’s former partner Sachin Bansal has also set his sight on two emerging sectors in India — agriculture technology and financial technology (fintech). He reportedly plans to set up a holding company through which he will establish new businesses and make fresh investments.
Flipkart co-founder Sachin Bansal announced his resignation after global retail giant Walmart in May said it would buy 77 percent of Flipkart for $16 billion to enter India’s growing e-commerce market.
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