Flipkart has promoted former Tiger Global Management executive Kalyan Krishnamurthy as the new chief executive to run the operations of India’s largest online retailer. Mr.Krishnamurthy is replacing co-founder Binny Bansal, who has been elevated to the position of Group CEO.
Mr. Krishnamurthy joined Flipkart in June last year as head of ‘category design organisation.’ He was hired from Flipkart’s largest investor Tiger Global, a New York-based investment firm.
The company announced a new organisation structure with Flipkart Group organisation at the apex level. It said that the newly formed ‘Group Org’ will focus on creating future value through a portfolio of new and high growth businesses. It would also manage capital allocation across group companies, and ensure each business has a strong CEO in place.
Krishnamurthy was previously the managing director of Tiger Global, which is the largest investor in Flipkart, and owns about 35 percent stake in Flipkart, valued at around $15 billion. Tiger Global also owns a minority stake in rival Amazon. From 2006 to 2011, Krishnamurthy served as the Director, Financial Planning & Analysis for the APAC region at eBay.
Krishnamurthy has saved the company from troubled waters twice before, according to a report in Mint. In 2013, Flipkart had been struggling with losses and slow sales, and an investigation into FDI norms being flouted. In 2016, the company was still struggling to increase sales. Krishnamurthy joined Flipkart first as an interim finance chief and then as the sales head. He had a hands on approach to the company, directly talking to employees, understanding processes, and mentoring senior and middle managers.
“Our execution engine is revved up,” said Binny Bansal in a statement. “We are now ready to build the Flipkart of the future as we continue on our journey of transforming commerce in India through technology.”
Flipkart said that Nitin Seth, presently the Chief Administrative officer, will be the Chief Operating Officer for the company and will report to Mr.Krishnamurthy. In his new role, Mr.Seth will be responsible for the company’s logistics arm Ekart and customer experience in addition to his existing role of leading human resources, strategy to execution capabilities and corporate functions for Flipkart.
Flipkart’s other co- founder Sachin Bansal will remain as the executive chairman, providing strategic direction for existing businesses and mentoring senior leadership. Flipkart said that Ananth Narayanan will continue as CEO of the company’s fashion unit Myntra-Jabong and Sameer Nigam will stay on as CEO of PhonePe, a Flipkart-owned payment app.