There’s more news to fuel speculations that Flipkart is firmly on track to filing an IPO in the United States. The company has announced a management rejig with the company’s CEO Sachin Bansal vacating his seat to make way for Binny Bansal, who is a co-founder of the company. However, this doesn’t put Sachin out of the spotlight as he will serve as the company’s executive chairman and take on wider responsibilities.
If Flipkart does prove the speculators right with an IPO in the United States in the coming months, there’s also reason to believe that it could be the largest listing abroad by an Indian company.
The decision was announced in an official statement uploaded on Flipkart’s official website. The move, it is being speculated, also comes in the wake of intensifying competition in the e-commerce domain and Flipkart’s bid to sustain an edge in what’s becoming an increasingly competitive marketplace. According to Flipkart’s statement, Bansal will primarily work on mentoring members of the senior leadership and explore new investment opportunities for the company. Flipkart, currently valued at US$15 bn, says that this will be the next phase of the journey for the ecommerce giant.
Binny, on the other hand, will see all business units report to him. The eight-year-old e-commerce firm has gained much ground in the Indian e-commerce industry since its inception. The company presently holds about 60% of the m-commerce market in India, and boasts over 50 million customers. The website is most sought after for fashion and smartphone purchases.
The Indian e- and m-commerce industry is at a defining threshold and a market leader like Flipkart clearly needs to a failsafe approach to stay ahead of the competition, without solely putting all its hopes on an IPO in the U.S.
With Sachin now left with more time to champion the e-commerce industry, the company will also be able to firmly establish its identity as a thought leader and first mover the e-commerce sector. His new role will also see Sachin represent Flipkart in important external forums.
Binny will now be largely responsible for the overall performance of the company and in driving operations to greater heights. Mukesh Bansal, on the other hand, will continue to lead the commerce platform along with his Chairmanship of Myntra, and will also be entrusted with the advertising business.
If Flipkart does prove the speculators right with an IPO in the United States in the coming months, there’s also reason to believe that it could be the largest listing abroad by an Indian company.
The decision was announced in an official statement uploaded on Flipkart’s official website. The move, it is being speculated, also comes in the wake of intensifying competition in the e-commerce domain and Flipkart’s bid to sustain an edge in what’s becoming an increasingly competitive marketplace. According to Flipkart’s statement, Bansal will primarily work on mentoring members of the senior leadership and explore new investment opportunities for the company. Flipkart, currently valued at US$15 bn, says that this will be the next phase of the journey for the ecommerce giant.
Binny, on the other hand, will see all business units report to him. The eight-year-old e-commerce firm has gained much ground in the Indian e-commerce industry since its inception. The company presently holds about 60% of the m-commerce market in India, and boasts over 50 million customers. The website is most sought after for fashion and smartphone purchases.
The Indian e- and m-commerce industry is at a defining threshold and a market leader like Flipkart clearly needs to a failsafe approach to stay ahead of the competition, without solely putting all its hopes on an IPO in the U.S.
With Sachin now left with more time to champion the e-commerce industry, the company will also be able to firmly establish its identity as a thought leader and first mover the e-commerce sector. His new role will also see Sachin represent Flipkart in important external forums.
Binny will now be largely responsible for the overall performance of the company and in driving operations to greater heights. Mukesh Bansal, on the other hand, will continue to lead the commerce platform along with his Chairmanship of Myntra, and will also be entrusted with the advertising business.
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