Walmart has launched an internal investigation into employees at Flipkart over allegations that they pocketed kickbacks worth more than Rs. 150 crore. The inquiry centres on staff in the company's smartphones and luggage and travel accessories (LTA) divisions. It is the third time in less than three years that the US retail giant has examined alleged financial misconduct at its Indian subsidiary.
Whistleblower complaints trigger the probe
The investigation was set off by whistleblower complaints, Moneycontrol reported, citing sources. The complaints allege that employees accepted payments and favours from vendors in return for giving them an edge on the platform. A person familiar with the matter told the publication that the exact amount and the precise nature of the alleged wrongdoing are still being established.
How the alleged scheme worked
According to the report, much of the money was allegedly collected through Flipkart's business-to-business (B2B) channel. Some employees are said to have taken a cut from vendors of certain mobile phone brands when devices moved from one business unit to another. In exchange, sellers allegedly received preferential treatment on the platform, helping them clock higher sales.
A pattern of earlier probes
This is not the first time these divisions have come under the lens. About two and a half years ago, employees in the LTA department were investigated for financial misappropriation, and at least three were terminated. Moneycontrol's report counts the latest inquiry as the third such internal probe Walmart has initiated at Flipkart in under three years.
Scale, leadership exits and IPO
The alleged amount is small against Flipkart's size. Its reported FY26 revenue stood at over Rs 1.46 lakh crore. Even so, the allegations add to a difficult period for the company. At least 14 vice presidents and senior vice presidents have left Flipkart over the past year. Walmart, which owns over 80 percent of Flipkart, has also not decided when to take the company public. Ex-employees have been demanding fairer stock buybacks.
What happens next
Neither Walmart nor Flipkart has commented publicly on the matter so far, as the investigation continues. Action against those found responsible is expected only after the probe establishes the facts. We have contacted Flipkart regarding this development, and will update this copy when we hear back.
