Walmart probes Flipkart staff over alleged Rs 150 crore kickbacks
Walmart has reportedly opened a probe into alleged vendor kickbacks of over Rs 150 crore at Flipkart. The claim is unverified and Flipkart cites its controls.
Walmart has opened an investigation into claims that Flipkart employees took kickbacks of more than Rs 150 crore (about $16 million) from vendors, Moneycontrol reported on 31 October 2026, citing people familiar with the matter. Inc42 carried the report and did not verify it independently. The figure is an allegation, not a finding, and this is a single-source story.
What is alleged
According to Inc42's account of the report, the probe follows whistleblower complaints about two divisions: smartphones, and luggage and travel accessories (LTA). Employees are alleged to have accepted payments and favours in return for preferential treatment on the platform, such as extra visibility that helped sales. Some are alleged to have used Flipkart's B2B operations to arrange it, and in smartphones to have taken cuts from vendors when devices moved between businesses. The exact amount and the nature of the wrongdoing have not been established.
Flipkart told Inc42 it has "robust governance processes and controls" in the words of its spokesperson, as paraphrased in the report, and that it takes concerns seriously and handles them through established processes. We have no statement from Walmart.
A third probe in under three years
Inc42 says this is Walmart's third such investigation at Flipkart in less than three years. A probe into the LTA division about two and a half years ago led to at least three dismissals. A smartphones probe about six months ago reportedly found wrongdoing by one employee, who resigned before being dismissed. A repeat pattern in the same units is why some observers will ask whether the controls are working, though the article offers no outside expert view and we do not claim one.
The wider Flipkart picture
The same report places the story among other pressures. At least 14 vice presidents and senior vice presidents have left in the past year. More than 1,000 former employees have asked Walmart's board for equal access to stock buybacks offered to current staff and a longer window to exercise vested options. On the IPO, Flipkart Group CEO Kalyan Krishnamurthy said in July there was no timeline, and earlier reports said Walmart wants profitability, with EBITDA breakeven by the end of FY27, before any listing or outside raise. For FY26, consolidated operating revenue rose 18% to Rs 1,45,880 crore and the net loss narrowed to Rs 8,468 crore from Rs 8,646 crore, including Myntra and Cleartrip. Flipkart is also investing in quick commerce and exploring food delivery and event ticketing.
Revenue growth gives a sense of the scale the allegation sits against. Working back from the reported 18% growth to Rs 1,45,880 crore in FY26 gives an implied FY25 figure.
What it means for readers
For sellers and vendors, the allegation concerns the practice of paying staff for visibility, which marketplace rules and anti-corruption policies forbid; a probe can lead to audits and tighter vendor onboarding. For founders thinking of a listing, governance questions raised before an IPO are read closely by investors, and a company that wants an IPO will want to show it acts on complaints. For shoppers, nothing changes today. The amount involved is small against Flipkart's revenue, but the issue is trust and control, not scale.
The calculator puts the alleged amount against Flipkart's reported FY26 figures. It is arithmetic, and it uses an unverified allegation as the input.
What to watch next
Watch for a statement from Walmart or Flipkart on the probe's scope and any dismissals, for reports confirming the amount, and for Flipkart's IPO timeline and its progress toward EBITDA breakeven.
Key takeaways
- Moneycontrol, as relayed by Inc42, reports Walmart is investigating alleged vendor kickbacks of over Rs 150 crore at Flipkart.
- The amount and the wrongdoing are unverified, and Flipkart says it has robust governance controls.
- This is reportedly Walmart's third such probe at Flipkart in under three years.
- Flipkart's FY26 net loss narrowed to Rs 8,468 crore on revenue of Rs 1,45,880 crore.
Sources
- [Inc42: Walmart probes Flipkart employees over alleged Rs 150 Cr kickbacks, report](https://inc42.com/buzz/walmart-probes-flipkart-employees-over-alleged-%e2%82%b9150-cr-kickbacks-report/)
Tags: Flipkart Walmart Ecommerce Corporate governance Startups