Incidents
Walmart Investigates Flipkart Employees Over Rs 150 Crore in Alleged Kickbacks
By News Desk ·
Key takeaways
- Walmart is investigating whistleblower complaints that Flipkart employees in smartphones and luggage took kickbacks totalling over Rs 150 crore ($16 million).
- The probe is the third Walmart has conducted inside Flipkart in less than three years, after an LTA case that led to at least three terminations and a smartphones case that ended in one resignation.
- At least 14 vice presidents and senior vice presidents have left Flipkart over the past year, and at least 1,000 former employees wrote to the Walmart board seeking parity in any stock buyback.
Walmart has opened an investigation into alleged kickbacks taken by Flipkart employees in the smartphones and luggage and travel accessories divisions, with whistleblower complaints putting the total at over Rs 150 crore ($16 million), Business News Today reported on October 30, 2026. Walmart owns more than 80 percent of Flipkart, India's leading e-commerce marketplace by gross merchandise value.
How the Flipkart Kickback Allegations Worked
Four people aware of the developments told Business News Today that employees in the two categories accepted favours from brands in exchange for preferential treatment. One source said staff largely exploited the business-to-business route, with some employees taking a cut from vendors of certain mobile phone brands as devices moved from one business to another. In return, the source said, those employees ensured sellers received greater visibility on the platform, which lifted sales for the vendors concerned.
"Investigations are still underway, and the quantum and exact nature of the wrongdoing, including the amount taken by certain employees in kickbacks, will become clear over the coming weeks. Walmart will then take necessary action," one of the people said. Walmart and Flipkart did not comment on the queries. Flipkart Group's revenue from operations rose 18% to ₹1,45,880 crore in FY26, while its consolidated net loss narrowed only to ₹8,468 crore, Outlook Business reported.
Walmart's Third Flipkart Probe in Three Years
According to akta.pro company records, Walmart reported FY2026 revenue of approximately $713.2 billion, up 4.7% year-over-year, and employs 2.1 million workers globally. The records list John Furner as president and chief executive officer, a role he took on January 16, 2026, and Kathryn McLay as president and CEO of Walmart International.
Earlier Flipkart Misconduct Cases
Around two-and-a-half years before this probe, Walmart investigated employees in the luggage and travel accessories department over financial misappropriation, and at least three employees were terminated afterwards, a source told Business News Today. Six months ago, Walmart investigated another case of financial wrongdoing in the smartphones division, and one employee found guilty chose to resign before being fired, a second source said. The details of both earlier investigations had not been reported previously.
What Comes Next for Flipkart
Walmart has yet to decide on a timeline for taking Flipkart public, Business News Today reported. At least 14 vice presidents and senior vice presidents have left Flipkart over the past year, and at least 1,000 former employees wrote to the Walmart board a few weeks ago seeking parity with current employees in the event of a stock buyback.