Former Tiger Global Management Executive – Kalyan Krishnamurthy is a veteran entrepreneur and an ace investor, taking over as CEO of Flipkart to steer the company to greater heights. Replacing co-founder Binny Bansal, who has been named as the group chief executive. Co-founder Sachin Bansal will continue as an executive chairman of India’s largest online marketplace, while Binny will collaborate as a Group CEO heading the alliance of Jabong, Flipkart, and Myntra.
“We are now ready to build the Flipkart of the future as we continue on our mission of transforming commerce in India through technology. I am confident enough that this new organization structure will deliver further value for the Flipkart group,” Binny said in an email to the employees.
For current employees, the reshuffle at the top management did not come as a shock. “Effectively this is how Flipkart was operating in the last few months. So, in terms of day-to-day operations and reporting, there is zero change,” said an employee.
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2016 was quite challenging for Flipkart as it faced the heap of problems from slow & low revenue growth, An increasingly aggressive competition from Amazon, valuations downs by investors and cost pressure, which also included cutting off employees.
Tiger Global is the biggest investor in Flipkart by value and has own nearly 35% stakes, which was last valued at $15 billion. The investor comes on board as the new CEO. This Major reshuffle raises so many questions, entrepreneurs, who were role models for many startups, are today in question. 2017 begins with its first major shake-up, will this become a trend be continued? Can we accept an investor to become the CEO?
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