Sujeet Kumar, Head of WS Retail, resigns

Sujeet Kumar, Head of Flipkart’s largest seller and its captive logistics business WS Retail has put in his papers. Kumar along with former Flipkart executive, Tapas Rudrapatna owns 46 percent stake in the company. Recently, the buzz was that Flipkart was trying to reduce its dependence on the company that until 2013 accounted for nearly all of Flipkart’s sales.

While India’s largest marketplace model has added many new sellers on its platform, WS Retail continues to drive more than half of Flipkart’s sales. The company that operates Flipkart’s logistics arm, employs more than 20,000 people. WS Retail reported Rs 3,135.3 crores revenues in 2013-14 against last financial year.

WS Retail was earlier owned by Flipkart founders Sachin Bansal and Binny Bansal, however, both sold their stakes later to a group of Indian investors and resigned from its board in 2012. Shortly after, the Enforcement Directorate (ED) initiated an investigation into whether Flipkart, which has overseas funding, was indirectly involved in retailing products to consumers directly through WS Retail since the Indian government doesn't allow FDI in B2C e-commerce.