Flipkart recently went through a major reshuffle with former COO Binny Bansal named the new CEO, replacing Sachin Bansal at the helm of the company, who is taking on a mentor-ship role as the Executive chairman of the Indian ecommerce giant.
While the move caught most people by surprise, speculation is that the move had been on the cards since the past year itself. As per livemint, which cites people present at the first open meeting post the reshuffle as its source,
Binny, Mukesh and I started this discussion post Big Billion Day (Flipkart’s big sales week in mid-October). We are a $15 billion company (in terms of valuation) and we want to move to $100 billion in two years. Chairman and chief executives have become two large roles in itself.
The company is apparently also on the lookout for a suitable candidate for the CEO-ship of ekart, Flipkart’s logistics arm that is currently being headed by Binny. Until the hunt is completed, Binny will continue as the interim CEO of ekart in addition to his new, enhanced role at Flipkart.
Interestingly, Flipkart had started looking for a suitable candidate to head ekart almost 4 months ago, reaffirming the Big billion day speculations. Well, now that the change has been confirmed, the co-founders spent some time trying to ease their employees with respect to this sudden transition, as well outlining the future plans of the company, as at an open house on Tuesday.
While Sachin refused to elaborate on the company’s — what some call impending — IPO, he did talk about his new role as the executive chairman, stating that his time will now be devoted to framing policies for e-commerce and launching new strategic initiatives with a particular focus on payments.
Payments is core to the e-commerce industry and there is a bigger problem to be solved there,
Adding that the company will continue along its drive of creating India-centric solutions to minimise the effect of foreign e-commerce entities, particularly Amazon. This statement is also a hint at Flipkart’s probable introduction of a new payment system, to rival those of Paytm and Snapdeal (FreeCharge Wallet).
Talking about how Flipkart aims to counter giants like Amazon, he added
The only way to defeat Amazon is to focus on products that revolve around India. Amazon is copying solutions from the West but we understand India better.
The statement isn’t really logical, considering that Amazon is known to adapt its local patform as per geographical needs — something which it has efficiently done in India as well.
Well, $100 Billion is certainly a very ambitious goal and the company will definitely have to counter the emerging importance of global internet companies in the country, if they are to chase it with any hope of success.
The re-shuffle can be expected to bring about some changes in the overall functioning and perhaps give the co-founders a wider perspective on the condition of the market. Also, with one of the Co-founders focusing upon key areas including payments — where Flipkart has been lagging behind competition — the company, which has lately been under pressure from investors to show profits, may find its prospects improving.