Flipkart’s investigation into nearly 150 employees over alleged kickbacks from vendors in its smartphones and luggage and travel accessories (LTA) categories has brought its internal controls and governance practices under scrutiny, particularly as the e-commerce company prepares for a potential public listing.
The employees are alleged to have exploited Flipkart’s business-to-business (B2B) operations by accepting payments from vendors in exchange for preferential treatment, including better visibility and placement of products on the platform. The investigation is ongoing, and the quantum of the alleged kickbacks is yet to be established, a person familiar with the matter said.
Shriram Subramanian, Founder of corporate governance advisory firm InGovern, said financial controls and internal oversight mechanisms were important to prevent such practices, which were not uncommon across organisations.
“There are proper internal risk control mechanisms out there. This is not happening for the first time, and it will not be the last time either,” Subramanian said.
An industry analyst, who did not wish to be named, said such instances could occur when certain dealers were more dependent on securing business than their competitors and were willing to offer incentives to employees to gain an advantage.
“This has happened earlier, and the company needs to fix the lapses,” the analyst said, adding that the employees involved could be at the mid- to senior-management level rather than the top leadership.
The alleged employees are understood to have facilitated preferential treatment for select sellers through Flipkart’s B2B channel, potentially affecting the visibility of competing vendors and the level playing field on the marketplace.
The probe marks the third internal investigation. Walmart has conducted business within Flipkart in less than three years, one of the persons cited above said.
Flipkart operates its B2B business through Flipkart Wholesale, which caters to kirana stores, retailers and MSMEs, and a separate B2B sales programme for marketplace sellers.
The development comes as Flipkart Internet reported an 18 per cent year-on-year increase in revenue from operations to ₹1,45,880 crore in FY26. Its consolidated net loss narrowed marginally to ₹8,468 crore from ₹8,646 crore in the previous financial year.
Published on October 30, 2026
