With Binny Bansal's exit from Flipkart, another senior executive, Ananth Narayanan, who handles the company's popular fashion platforms Jabong and Myntra, may also quit soon. Under the new company structure, Kalyan Krishnamurthy is the new overall boss of the group companies, and CEOs from Myntra, Jabong, and PhonePe will report to him. Reports say Narayanan was close to Binny Bansal, and now things would not be the same with Kalyan at the helm of affairs of the Flipkart group companies.
Kalyan Krishnamurthy has a different working style, and reports suggest both he and Narayanan don't see "eye to eye" on several issues, including Kalyan's push for the integration of Myntra and Jabong with Flipkart's fashion vertical, Flipkart Fashion. For long, Ananth has been of the view that both brands -- Myntra and Jabong -- should be retained. "If Ananth has to report to Kalyan, he will also not stay for long because Kalyan already has Rishi Vasudev who manages fashion," Moneycontrol quoted a source as saying.
Differences have come out in the open after preferential treatment given to Flipkart Fashion instead of Myntra and Jabong. If one compares the Big Billion Day sales of these three verticals in 2017 and 2018, it is quite visible. In 2017, all three entities claimed 80 per cent market share during the annual sale. In October 2018, half of the sales (over 50 per cent) was claimed by Flipkart Fashion only, while Myntra and Jabong didn't even participate. Instead, they organised their own sales called Big Fashion Days.
Reports suggest he could look for other options as Kalyan would want things to be done in a different way than Binny Bansal, with whom Ananth shared a good equation. Flipkart had acquired Myntra and Jabong in May 2014 and July 2016, respectively. While Myntra was acquired for whopping Rs 2,000 crore, Jabong was bought for a discounted deal of Rs 504 crore.
Walmart Inc, in a statement issued on November 13, said Binny had been contemplating a transition for some time and they have been working together on a succession plan, which has now been accelerated. "Going forward, Kalyan Krishnamurthy will continue to be the CEO of Flipkart, which will now include Myntra and Jabong, continuing to operate as separate platforms within the Flipkart business. Ananth Narayanan will continue providing great leadership as the CEO of Myntra and Jabong, and will report into Kalyan. Sameer Nigam will continue leading PhonePe as CEO. Both Kalyan and Sameer will report directly into the board."
Edited by Manoj Sharma