Flipkart co-founder Binny Bansal working on new business, eyes $100 million pay-out from Walmart
Binny Bansal is negotiating new terms with Walmart over receiving a cash pay-out of around $100 million (Rs 665 crore) down from a previous figure of $850 million as the Flipkart co-founder looks to start a new business.
Binny Bansal is now eyeing a $100 million cash pay-out from Walmart as part of its 77 percent acquisition of the business he co-founded, Flipkart. Previously, Bansal was looking to receive $850 million from Walmart according to his previous contract in exchange for half of his 4-4.5 percent stake in Flipkart. The money would have been due after August 2020. However, if the negotiations prove fruitful, he could receive the $100 million before August 2020 and keep the remainder of his stake in the business.
Bansal intends to spend the capital he will gain from Walmart on investing in start-ups, according to a Mint report. He has previously backed Roposo and Ather Energy. He is in now the process of launching his own start-up with the former McKinsey consultant and Flipkart Ekart head, Saikiran Krishnamurthy.
Bansal and Krishnamurthy’s start-up venture is called xto 10x Technologies and both Bansal and Krishnamurthy have funded it so far. The business pland to hire a team in January as it tests out its product on other start-ups. The information released thus far about the business’ product is that it will offer technology tools, learning, and consulting services to nascent start-ups looking to expand.
The report by Mint further added that Binny Bansal plans to leave Bengaluru in early 2019 after his swift departure from Flipkart following allegations of misconduct. Bansal was cleared but his behaviour was called into question by the Walmart-led investigation.
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