Flipkart has announced a new management structure under which its co-founder and current CEO Sachin Bansal will be the Executive Chairman of the company. Co-founder Binny Bansal, who was the COO, will now become the CEO of Flipkart.
Sachin Bansal will now be mentoring the senior leadership of the company and help explore new investment opportunities. He will continue at his position as Chairman of board, the company said in a statement announcing the new structure. As CEO of Flipkart, Binny Bansal will take care of day to day business of the company. Business areas such as business areas – Commerce, Ekart and Myntra will now report to him.
“Today, we are in a very strong leadership position with over 60% market share of the m-commerce market, 50 million customers and clear leadership in smartphones and fashion,” said Binny Bansal. “We will continue to build world-class customer experience, expand our supply chain infrastructure to reach all parts of India, drive innovations in mobile commerce and bring in disruptive technologies.”
Flipkart’s management rejig comes shortly after reports that the company is looking to raise about $1.4 billion, Rs 9,200 crore approximately, in a bid to continue its momentum in e-commerce segment.
According to reports, Flipkart hasn’t yet been able to increase margins despite dominance in the segment. The burn rate for Flipkart has increased even though it has been leading in categories such as smartphones. However, Flipkart is making ‘wafer-thin’ margins from these categories, ET reports.