India's largest online retailer Flipkart has appointed Kalyan Krishnamurthy as its new chief executive officer. Binny Bansal, meanwhile, has been stepped up as group CEO.
Krishnamurthy, whom Flipkart had hired from its biggest investor Tiger Global, is currently heading the Category Design Organisation.
Prior to Tiger Global, Krishnamurthy held various senior positions at eBay. From May 2013 to November 2014, he served as the Interim Chief Financial Officer at Flipkart Online Services Pvt. Ltd.
Now, at Flipkart, Krishnamurthy will be responsible for Flipkart P&L. There have also been other changes in the top brass, with Nitin Seth, presently the Chief Administrative officer, getting the role of COO.
"This newly formed group organisation 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," Flipkart said in a statement.
"In his new role, Nitin will be responsible for Ekart and Customer experience in addition to his existing role leading HR, strategy to execution capabilities and corporate functions for Flipkart. Nitin will report to Kalyan," the company said.
Ananth Narayanan will continue as CEO of Myntra-Jabong and Sameer Nigam CEO of PhonePe. Kalyan, Ananth and Sameer will report to Binny. The company also said that it is in the process of hiring a Group CFO and General Counsel and both of them will also report to Binny. Sachin Bansal will continue as the Executive Chairman.
Now group CEO Binny Bansal highlighted a positive outlook for Flipkart's future with the changes at the top and some of the company's acquisitions last year.
"2016 has been truly an extraordinary year for Flipkart. We effected a complete turnaround of the business and consolidated our leadership position in ecommerce. Our execution engine is revved up. Our customer experience and product quality has shown tremendous improvement. This was also the year when Flipkart evolved as a group. We acquired Jabong mid last year and the consolidation is going on well. Myntra became a $ 1 billion dollar GMV run rate company and achieved ~ 80% YoY growth. PhonePe has been another runaway success story with 40% of all UPI transactions in India," Bansal said.
"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 organisation structure will deliver further value for Flipkart group." he added.
The intense competition in the e-retail market due to the entry of US online retail giant Amazon has hit Flipkart's finances in the past couple of years. Flipkart reported loss of Rs 1,096 crore in 2015 and Rs 2,306 crore in 2016, according to the company's filing with the Registrar of Companies.
Many top executives had quit Flipkart in 2016, including board member and head of marketplace Mukesh Bansal, chief financial officer Sanjay Baweja, chief product officer Punit Soni,chief technology officer Peeyush Ranjan and chief business officer Ankit Nagori.