Flipkart – Indian Ecommerce Portal, who has changed the way Indian do shopping, has given wings to the startup growth, is again in lime light. This time the reason is restricting the top management, yes you heard it right.
Flipkart has promoted Kalyan Krishnamurthy as the new chief executive to run the operations of India’s. Mr. Krishnamurthy is replacing co-founder Binny Bansal, who became the CEO few months back. Now Binny Bansal will be Group CEO Flipkart.
Krishnamurthy joined Flipkart in June as head of ‘category design organization’ from Tiger Global, which is one of the largest investors in the e-commerce firm.
After this restructuring Sachin Bansal will continue as Executive Chairman, where in Ananth Narayanan will continue as CEO of Myntra-Jabong and Sameer Nigam as CEO of PhonePe. Flipkart, Jabong-Myntra and PhonePe will operate under this group structure and their CEOs will report to Binny.
Flipkart Group is in the process of hiring a Group CFO and General Counsel and both of them will also report to Binny Bansal.
Nitin Seth, presently the Chief Administrative officer, will be the Chief Operating Officer for the company and will report to Mr. Krishnamurthy.
Flipkart lost its valuation from a peak of $15.2 billion after several mutual funds marked down the value of their investments in the company, while Bansals struggled to get new investors to maintain lead over Amazon.
Despite this, Binny Bansal and Krishnamurthy mobilised resources to spring a fight back against Amazon’s aggressive push, to score higher sales during the festive season. The battle cost had forced Amazon’s international operations to post its highest losses in the September quarter.
With this restructuring now both Co-Founders are out from day to day operations from a company which they have built and taken up to this level. Some people are guessing this as a down fall of Flipkart, where in some are considering it as a strategic move to enhance existing portfolio for the company and explore new portfolios. Only time will tell the truth, what do you say!