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Walmart has launched an investigation following whistleblower complaints alleging that Flipkart employees received over ₹150 Cr in kickbacks from vendors The allegations concern employees offering vendors preferential treatment, including greater platform visibility, raising questions about controls governing Flipkart’s vendor relationships This is Walmart’s third such investigation at Flipkart in less than three years, while Flipkart reiterated its commitment to governance and compliance US retail giant Walmart has launched an investigation into allegations that employees at its subsidiary Flipkart received over ₹150 Cr ($16 Mn) in kickbacks from vendors. The probe follows whistleblower complaints involving employees in Flipkart’s smartphones and luggage and travel accessories (LTA) divisions, Moneycontrol reported, citing people familiar with the matter. Employees allegedly accepted payments and favours from vendors in exchange for preferential treatment on the ecommerce platform, including greater visibility that helped drive sales. According to the report, some employees allegedly used Flipkart’s B2B operations to facilitate these arrangements. In the smartphones category, employees allegedly took cuts from vendors when devices moved between businesses. The investigation is ongoing, and the exact quantum and nature of the alleged wrongdoing are yet to be established, the report added. Responding to Inc42’s queries, a Flipkart spokesperson said, “Flipkart has robust governance processes and controls and is committed to the highest standards of integrity and compliance. We take any concerns seriously and address them through established processes. We remain committed to ensuring the highest standards of ethical conduct across our business.” According to Moneycontrol, this is Walmart’s third investigation into alleged financial misconduct at Flipkart in less than three years. An investigation into employees in the LTA division around two-and-a-half years ago resulted in at least three dismissals. Another probe in the smartphones division around six months ago reportedly found wrongdoing by an employee, who resigned before being dismissed. Flipkart Grapples With Multiple Challenges The investigation comes amid senior leadership exits, former employees’ concerns over ESOP liquidity, and uncertainty surrounding Flipkart’s IPO timeline. At least 14 vice presidents and senior vice presidents have left Flipkart over the past year. These include smartphones VP Kanchan Mishra, product and technology VP Amit Sachan, and corporate tax VP Kamal Chopra. More than 1,000 former Flipkart Group employees recently approached Walmart’s board, seeking equal access to stock buyback opportunities offered to current employees. They also sought an extension of the window to exercise their vested stock options and a designated point of contact to address their concerns. Meanwhile, Flipkart Group CEO Kalyan Krishnamurthy said in July that the company did not have a timeline for going public. Earlier reports said Walmart had asked Flipkart to prioritise profitability and target EBITDA breakeven by the end of FY27 before pursuing an IPO or another external fundraise. Flipkart Internet reported an 18% YoY increase in consolidated operating revenue to ₹1,45,880 Cr in FY26. Its consolidated net loss narrowed marginally to ₹8,468 Cr from ₹8,646 Cr in FY25. These consolidated results reflect the Flipkart Group’s performance, including businesses such as Myntra and Cleartrip, following its redomiciliation to India. Flipkart also continues to invest in newer businesses, including quick commerce platform Flipkart Minutes, which competes with Blinkit, Zepto, and Swiggy Instamart. The company is also exploring opportunities in food delivery and event ticketing.
document fetched 2026-11-01 02:57 · canonical https://inc42.com/buzz/walmart-probes-flipkart-employees-over-alleged-%e2%82%b9150-cr-kickbacks-report