Walmart probes Flipkart over Rs 150 cr kickbacks

Walmart has launched an internal investigation into alleged kickbacks exceeding Rs 150 crore ($16 million) involving employees at its subsidiary Flipkart. The investigation was triggered by whistleblower complaints and is examining whether staff accepted payments or favours from brands and vendors in exchange for preferential treatment on the e-commerce platform.

The probe currently focuses on employees in Flipkart’s smartphones and luggage and travel accessories (LTA) divisions. The alleged benefits reportedly total more than Rs 150 crore, with the exact amount and nature of the suspected wrongdoing yet to be established as the inquiry continues.

The investigation is looking into whether some Flipkart employees used business-to-business channels to facilitate the alleged misconduct. Vendors handling mobile phone transactions between businesses reportedly provided payments to certain employees. In return, these vendors were reportedly given preferential treatment, including greater visibility on the platform that supported higher sales.

Some of the suspected activity is linked to Flipkart’s B2B operations, which sit alongside its consumer marketplace. The examination includes whether commercial advantages such as improved placement and assistance for particular sellers and vendors were granted in exchange for financial or other benefits from brands.

This is the third internal investigation Walmart has initiated at Flipkart over alleged financial misconduct in less than three years. Around two-and-a-half years ago, an inquiry into the luggage and travel accessories unit examined financial misappropriation and led to the termination of at least three employees.

A separate investigation was carried out around six months ago in the smartphones division. In that case, one employee was found guilty of wrongdoing and resigned before disciplinary action could be enforced. Details of these earlier probes had not been widely disclosed before the latest developments.

Walmart owns more than 80 percent of Flipkart and is listed in the United States, making compliance with US Securities and Exchange Commission requirements an important backdrop to the investigation. The alleged kickbacks of about Rs 150 crore are relatively small compared with Flipkart’s reported revenues of over Rs 1.46 lakh crore for financial year 2026, but they nonetheless raise questions about the robustness of internal controls and processes.

Kickbacks of this nature are uncommon, particularly at large and reputed companies such as Flipkart, which is positioned as a leading e-commerce marketplace in India in terms of gross merchandise value. One person familiar with the process indicated that the quantum and exact nature of the alleged wrongdoing should become clearer in the coming weeks, after which Walmart is expected to take necessary action.

The latest probe comes as Flipkart is dealing with other challenges, including a series of senior-level departures. At least 14 vice presidents and senior vice presidents have left the company over the past year, reflecting ongoing management churn at the e-commerce firm.

Employee sentiment around equity compensation has also been strained. More than 1,000 former Flipkart employees have written to Walmart’s board seeking equal treatment with current staff if a stock buyback takes place, amid broader concerns about the liquidity of employee stock ownership plans and uncertainty over Flipkart’s IPO timeline, which remains undecided.