Flipkart has named former Tiger Global executive Kalyan Krishnamurthy as its Chief Executive Officer, PTI reported on Monday. Co-founder of Flipkart Binny Bansal, who until now held the post of CEO, has been named the group chief executive. His fellow founder Sachin Bansal will continue to be the executive chairman of the e-commerce company.
In a statement, the company said that the newly formed group organisation “will focus on creating future value through a portfolio of new, high-growth businesses, manage capital allocation across group companies”, reported the Economic Times. Nitin Seth, who held the post of chief administrative officer at Flipkart, will now be the COO. “I am confident that this new organisation structure will deliver further value for Flipkart group,” Binny Bansal said in a statement on Monday, reported Mint.
In November 2016, Morgan Stanley Select Dimensions Investment Series had lowered the value of Flipkart by 38% to $5.54 billion (approximately Rs 38,030 crore). Flipkart last year lost its number 1 position in the e-commerce sector to Amazon India, and also saw the departure of a number of senior executives. Despite this, it was also reported that the compensation to top-paid employees alone takes the company’s remuneration bill to around Rs 300 crore.
In the fiscal year 2016, Flipkart Internet (which operates Flipkart) posted a loss of Rs 2,306 crore, more than doubled from a year ago. This despite revenue growing around 140% to Rs1,952 crore.
Mint reported that the shake-up in management at the e-commerce company was expected, coming just a year after Binny Bansal had replaced his co-founder Sachin Bansal in the CEO role. Krishnamurthy, the new CEO who is also said to be close to Tiger Global’s largest investor Lee Fixel, will now be responsible for Flipkart’s profit and loss, according to the company release.