Walmart Investigates Flipkart Staff Over Alleged ₹150 Crore Vendor Kickbacks

Walmart has opened a probe into claims that employees of its Indian e‑commerce unit Flipkart received more than ₹150 crore ($16 million) in kickbacks from vendors.

Key takeaways

• Alleged payments: Whistleblowers say staff in the smartphones and luggage‑travel accessories divisions accepted cash and favours in exchange for preferential platform treatment.
• Scope of scheme: The report links the alleged kickbacks to increased product visibility and to the use of Flipkart’s B2B operations to channel payments.
• Previous probes: This is Walmart’s third investigation into Flipkart misconduct in under three years, following dismissals in the LTA unit and a resignation in the smartphones unit.
• Leadership turmoil: The inquiry coincides with a wave of senior exits, ESOP‑related grievances from former staff and an undefined IPO timeline.
• Financial context: Flipkart posted an 18% year‑on‑year rise in operating revenue to ₹1,45,880 crore in FY‑26, while its net loss narrowed slightly.

Details of the alleged kickback scheme

According to sources cited by Moneycontrol, employees in the smartphones and luggage‑travel accessories (LTA) divisions allegedly took payments from vendors who sought better placement on Flipkart’s marketplace. In the smartphones segment, staff are said to have taken a cut when devices moved between business customers, leveraging the platform’s B2B channel to conceal the transactions.

Walmart’s response and prior investigations

Flipkart’s spokesperson told Inc42 that the company has “robust governance processes and controls” and that any concerns are addressed through established procedures. Walmart’s earlier investigations resulted in at least three dismissals in the LTA unit about two and a half years ago and the resignation of a smartphones employee six months prior.

Broader corporate challenges

Flipkart has seen a surge of senior departures, with 14 vice presidents and senior vice presidents leaving in the past year, including heads of smartphones, product‑technology and corporate tax. Over 1,000 former employees have approached Walmart’s board seeking equal access to a stock‑buyback programme and an extension to exercise vested ESOPs.