Flipkart co-founder Binny Bansal exits board, launches new startup OppDoor

Flipkart Co-Founder Binny Bansal has officially exited the board of the Walmart-owned e-commerce firm, which he founded along with Sachin Bansal 16 years ago. The move comes months after he sold his remaining stake in the firm. Binny Bansal recently also floated his new startup, OppDoor, to provide end-to-end solutions to e-commerce firms.

Sachin Bansal, the other co-founder, left the board in 2018. After leaving Flipkart, Sachin founded Navi, a financial services firm.

In 2018, when US retail giant Walmart invested $16 billion for a majority stake in Flipkart, the Bengaluru-based firm was valued at less than $21 billion. This not only made the founders Sachin Bansal and Binny Bansal billionaires but also provided blockbuster exits to the investors. The two Bansals are not related.

“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,” said Binny Bansal. “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.”

Leigh Hopkins, Executive Vice President, International Strategy and Development and Regional CEO – Asia and Walmex and Flipkart Board Member said that as the founder of the business, Binny Bansal provides a unique combination of knowledge and experience.

“We have been fortunate to have him remain on the Board since Walmart’s investment in 2018, and we have greatly benefited from his counsel and insight,” said Hopkins. “We thank him and wish him continued success with his next ventures.”

Kalyan Krishnamurthy, CEO and Flipkart Board Member said that Binny Bansal’s insights and deep expertise of the business have been invaluable to the Board and company.

“We are thankful for Binny’s partnership over the past several years, as the Flipkart Group has grown and entered into new businesses,” said Krishnamurthy. “Flipkart is the outcome of a great idea and a lot of hard work, built by teams committed to transforming how India shops. We wish Binny the best as he embarks on his next venture and thank him for the deep impact he has enabled for the Indian retail ecosystem.”

In 2023, Walmart paid $1.4 billion to buy out US-based Tiger Global’s investment in Flipkart, according to sources. The transaction put Flipkart’s valuation at $35 billion, against nearly $38 billion in 2021 when it raised funds from Japan’s SoftBank, Walmart, and other investors.

Tiger Global, Flipkart Co-Founder Binny Bansal, and Accel, all fully exited the e-commerce firm by selling their stake to Walmart. The move by Walmart is part of its strategy to prepare Flipkart for an initial public offering (IPO), the sources said.

Accel held more than 20 per cent in Flipkart initially when it backed the company in 2008, according to the sources. It later reduced its stake to about 6 per cent before Walmart acquired a majority share in Flipkart in 2018.

In 2018, when Walmart invested $16 billion in Flipkart for the majority stake, the company was valued at less than $21 billion. However, Accel retained a 1.1 per cent stake and last year also fully exited the company. This generated cumulative returns of about $1.5 billion-$2 billion or 25-30X returns on its total investment, according to the sources. Similarly, Tiger Global made cumulative gains of approximately $3.5 billion on its investments in the company.

Though Flipkart Co-Founder Sachin Bansal had sold his entire stake to Walmart in 2018, Binny Bansal continued to hold a small stake (1-1.8 per cent) in the e-commerce firm. Binny Bansal divested the remaining stake and made a total of about $1-1.5 billion since inception to exit, according to the sources. He is also an investor in fintech giant PhonePe and sits on its board.

Flipkart is in talks with investors to raise a total funding of about $1 billion to help it in its strategic objectives, including becoming IPO-ready, according to the sources. It recently raised nearly $600 million in fresh funds from parent company Walmart and another investor. According to the sources, the latest financing is likely to value the firm at a 5-10 per cent premium to its previous valuation of $33 billion. Flipkart’s valuation had been adjusted to $33 billion after fintech firm PhonePe was separated from the group in December 2022.

First Published: Jan 27 2024 | 4:45 PM IST