It looks like not everyone has been ecstatic about the Flipkart-Walmart deal. On the deal front, Flipkart has already said goodbye to Sachin Bansal and its investors, all the while its employees are looking forward to the ESOPs with Walmart’s filmy-yet-timely entry into the Indian ecommerce space with Flipkart.
However, in all this frenzy over the deal, the Indian ecommerce industry also witnessed some conspiracy theory surfacing. While Sachin Bansal wrote his goodbye post on Facebook and equally sentimental post also came from Binny Bansal and the Flipsters but a Livemint report has claimed that Sachin Bansal had to forcefully exit from the company.
The conspiracy theory gets a head start with a look at the short non-compete clause with Walmart. The report claims that following the clause, Sachin Bansal will be restricted from starting any business that directly or indirectly competes with Flipkart for 18 months from his departure from Flipkart. He will also not be able to make any investments or take a management role in any competing businesses for the next 36 months.
While the beginning of Flipkart has been a subject of inspiration for many, the real boost and slump came in 2014. On the slump side, decisions to become app-only by Sachin Bansal and out-of-stock scenarios during Flipkart sale had brought major downside to the company.
Sachin Bansal had also decided that Flipkart didn’t need advertising — if its product/platform was good enough, people would anyway flock to it.
However, the boost was given by fundings when in July 2014, Flipkart raised $1 Bn at a valuation of $7 Bn. Flipkart had become a clear market leader, achieved the status of a unicorn and attracted lots of capital.