flipkart is India’s largest online retailer moves cofounder Binny Bansal to a new position as group CEO, in a management reshuffle that strengthens the influence wielded by its largest investor Tiger Global and completes a process begun a year ago
Kalyan Krishnamurthy, currently heading the Category Design Organisation, will become the CEO of Flipkart. Co-founder Sachin Bansal will continue as executive chairman.
Krishnamurthy joined Flipkart in June from Tiger Global, which is one of the largest investors in the e-commerce firm.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.
“We are now ready to build the Flipkart of the future as we continue on our journey of transforming commerce in India through technology. I am confident that this new organisation structure will deliver further value for Flipkart group,” Flipkart Group CEO Binny said in a statement.
The development comes within a year of the previous high level at Flipkart when Binny Bansal, then chief operating officer, was appointed Flipkart CEO, replacing Sachin Bansal, who was appointed executive chairman.
Flipkart Group Organisation will focus on building a portfolio of new, high value-creating businesses that are disruptive and will transform commerce in India, it said.
“To evaluate these opportunities and construct this portfolio of new businesses, Flipkart Group Organisation will have a Group Strategy function as well as mergers and acquisition,” it said.
The other key responsibility of Binny as Group CEO will be to oversee capital allocation across all the group companies, CEO selection.
“Nitin Seth, presently the Chief Administrative officer, will be the COO for Flipkart. In his new role, Nitin will be responsible for Ekart and customer experience in addition to his existing role leading HR, strategy to execution capabilities and corporate functions for Flipkart,” the statement said.
Krishnamurthy will report to outgoing CEO Binny Bansal, a Flipkart co-founder who will now head a newly formed entity called Flipkart Group Organisation, which the company says will focus on new and high-growth businesses, manage capital allocation across group companies, and ensure each business has a strong CEO in place.
The new structure comes just one year after Bansal replaced his partner Sachin Bansal (no relation) as the CEO of Flipkart, and at a time when Flipkart is struggling with devaluation by several of its investors.
Flipkart is struggling to retain its position as a market leader in India, with US-online retail major Amazon nipping at its heels. In November, a fund managed by Morgan Stanley slashed the e-commerce major’s value to $5.54 billion (Rs38,030 crore), down from a peak of $15.5 billion in May 2015.
“Flipkart Group is in the process of hiring a Group CFO and General Counsel and both of them will also report to Binny,” the company said.Sachin Bansal will continue to be executive chairman, focusing on broader strategy and mentoring top leadership.