Flipkart, India’s largest e-commerce company, is switching its CEO, again. The online retailer has decided to appoint Kalyan Krishnamurthy as its new CEO, replacing former CEO, Binny Bansal. Up until now, Krishnamurthy functioned as the head of Flipkart’s category design organization. This switch comes only a single year after Bansal replaced his former in the role, Sachin Bansal.
Binny Bansal will now operate as the CEO of the newly formed Group Org, which will include Flipkart, Jabong, Myntra, and PhonePe. According to the company, “this newly formed Group Org will focus on creating future value through a portfolio of new, high growth businesses, manage capital allocation across group companies, and ensure each business has a strong CEO in place.”
Other than this being a significant business move for Flipkart itself, it is no less important to the Indian tech industry as a whole. This is the first time in history that a leading Indian tech company has decided to assign a non-founder as its CEO. Generally speaking, assigning experienced professional who is not a co-founder as CEO is not at all uncommon in the tech industry. However, in India, it is still mostly considered unacceptable. Flipkart’s move will hopefully set a precedent to other Indian companies to follow suit.
In Flipkart, anyhow, everyone seem to be convinced this is the right move. “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 organization structure will deliver further value for the Flipkart group,” stated Bansel.
Founded in 2007 by two former Amazon workers, Flipkart now appears to be giving a fair fight to the international e-commerce giant. Currently, the company exceeds the local Amazon business in size. In making such speedy and bold structural changes, the Indian company sure seems like it has a plan. Future will tell how well it will succeed.