Sanjay Baweja, who was earlier an employee of Tata Communications joined Flipkart as the Chief Financial Officer two years back, has resigned from the job. This news comes as a shock as according to reports Flipkart is in advanced level talks to raise$ 1 billion from the global retailer Wal-Mart and because it is the festive period where e-commerce sales almost treble.
Related Post: E-commerce giant Flipkart crosses the 100 million customers mark
Flipkart which is currently engaged in a neck to neck battle with Amazon.in has witnessed the resignation of three very important employees before Baweja announced his exit. Flipkart’s commerce head Mukesh Bansal and chief business officer Ankit Nagori also left the company in February this year, to start their entrepreneurial venture followed by the chief product officer Punit Soni, quit in April this year after an year-long stint.
Here are a few estimated reasons as to why Baweja might have quit:
1. Unable to raise funds
The e-commerce giant was unable garner the required amount of funds and the company’s future was depending upon the deal with Wal-Mart. However, that deal fell through which might have caused the owners to take a decision to ask Baweja to quit.
Related Post: Success story of Sachin Bansal: The entrepreneur who almost shut down Flipkart
2. PwC audit report
Rumours stated that that following the Pricewaterhouse-Coopers forensic report, Baweja was asked to quit the company. An internal audit report prepared by PwC on the directions by Jabong’s German investor, Rocket Internet, in July revealed several corporate governance violations by some of the top ex-senior managers of Jabong.
Jabong was acquired by Flipkart in 2016.
Related Post: 5 things you need to know about the Myntra-Jabong acquisition
3. Persistent losses
It was believed that Baweja was asked to join the company when Flipkart wanted to cut losses, however, amongst growing competition, this didn’t work out well for Flipkart.
Related Post: Valuation of Flipkart slashed by two more investors
