Walmart probes Flipkart employees over kickbacks exceeding Rs 150 crore

US retail giant Walmart has launched an investigation into alleged wrongdoing at Flipkart following whistleblower complaints that employees in the e-commerce company's smartphones and luggage and travel accessories (LTA) divisions received kickbacks totalling over Rs 150 crore ($16 million), four people aware of the developments told Moneycontrol.

Walmart, which owns more than 80 percent of Flipkart, is the Indian e-commerce major's parent company.

“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 persons cited above said. Two other sources confirmed the details.

Walmart and Flipkart did not offer comments to queries sent by Moneycontrol.

The arrangement

Kickbacks of this nature are uncommon, particularly at large and reputed companies such as Flipkart, India’s leading e-commerce marketplace ahead of Amazon and Meesho in terms of gross merchandise value (GMV). While the alleged financial misappropriation of around Rs 150 crore (~$16 million) may appear relatively small given Flipkart’s scale - the company reported revenues of over Rs 1.46 lakh crore (over $15 billion) for financial year (FY) 2026 - the incident raises questions about the robustness of its internal controls and processes.

At Flipkart, certain employees were understood to have accepted favours from brands across the smartphones and luggage and travel accessories (LTA) categories in exchange for preferential treatment, sources said.

“The employees were found to be largely exploiting the business-to-business (B2B) route at Flipkart. Some Flipkart employees took a cut from vendors of certain mobile phone brands when devices were moving from one business to another,” a source told Moneycontrol.

“In exchange, these Flipkart employees ensured that sellers received preferential treatment, including greater visibility, on the platform, which resulted in higher sales for the vendors concerned,” another person familiar with the developments said.

Flipkart operates its B2B (business-to-business) operations through two primary channels: Flipkart Wholesale (targeting kiranas, retailers, and MSMEs) and its Flipkart B2B Sales Program for marketplace sellers. This is over and above Flipkart's consumer marketplace arm.

Third such investigation

The probe marks the third investigation Walmart has conducted within Flipkart in less than three years, one of the persons cited above said.

Around two-and-a-half years ago, Walmart had investigated employees in the luggage and travel accessories (LTA) department over financial misappropriation. “Following the investigation, at least three employees were terminated,” a source said.

Then six months ago, Walmart investigated another case of financial wrongdoing in the smartphones division, according to a source. “One employee was found guilty of the charges and chose to resign before they could be fired,” a second source told Moneycontrol.

The details of the first two investigations have not been reported previously.

Such incidents are particularly significant for companies such as Walmart, which is listed in the US and subject to strict norms under the Securities and Exchange Commission (SEC).

Flipkart's winter of discontent

These developments also come at a critical time for Flipkart, which is reeling under a series of senior-level exits, discontent among current and former employees over the liquidity of ESOPs (employee stock ownership plan), and uncertainty surrounding its IPO timeline.

As Moneycontrol exclusively first reported a few months ago, Walmart has yet to decide on a timeline for taking Flipkart public. A growing number of current and former employees are unhappy with the company’s direction, particularly as the delay in an IPO has impacted their expectations around ESOP liquidity.