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Walmart reorganizes the Flipkart group after the release of Binny Bansal. Photo: Mint
Bengaluru: Flipkart, controlled by Walmart Inc., whose co-founder and general manager, Binny Bansal, resigned earlier this week after a "malpractice" investigation, could abolish the CEO position and retain the new structure set up after the departure of Bansal, said two people aware of the
One of the key factors of this decision is the likely split of PhonePe, a payment company of Flipkart, in an independent company, said the aforementioned people, asking anonymity. PhonePe will remain majority owned by Walmart, but will raise funds from others Investors, Tiger Global and Tencent, shareholders of Flipkart, have expressed interest in funding PhonePe, he said.
PhonePe will search at least one external investor for a large amount. of capital, you have to take on Paytm, the added person. Paytm is the first digital payment group in India.
PhonePe's co-founder and CEO, SamePar Nigam, is part of the new structure and reports directly to Flipkart's board of directors, along with Kalyan Krishnamurthy, CEO of Flipkart.
"PhonePe wants to maintain its independence from the group and wants the opportunity to raise funds from outside strategic investors. Walmart has given them the green light to do so, "said one of the two aforementioned people.
The Mint reported for the first time on October 1 that PhonePe was able to raise funds separately. The Mint had also indicated that if PhonePe got more strategic investors outside of Walmart, it could consider raising up to $ 1 billion next year.
Under the new structure, Myntra and Jabong will continue to maintain their status as independent platforms within the group, although reporting to Krishnamurthy, not being part of the Flipkart fashion industry for the moment, said the people mentioned above. Walmart wants to retain key leaders such as Ananth Narayanan, CEO of Myntra and Jabong, and Myntra's success as an independent brand has convinced Walmart to maintain its independence for the moment, they added.
"Ananth and other senior leaders of Myntra will see how the new structure will work over the next few months and then decide if she wants to continue," said the second person quoted above.
While Flipkart will remove the title and the CEO position from the group, Krishnamurthy will be internal. being seen as the de facto head of the entire group, given his new additional responsibilities of supervising Myntra and Jabong, said the aforementioned people. After the links between Flipkart and its founders finally dissociated after Bansal's dramatic ouster on Tuesday, the e-commerce company is now almost entirely dependent on the 46-year-old ruler.
"The Flipkart Group is committed to the success of Myntra and growing the business, more than ever. The Myntra team has done innovative work to grow the company and create India's leading online platforms for fashion and lifestyle. We want to give the Myntra team the means to continue operating independently to achieve even greater success, "Krishnamurthy said in a statement released Thursday by a spokesman.
Earlier this week, while announcing Flipkart's release from Bansal, Walmart said Bansal "had been contemplating a transition for some time and that we were working together on a succession plan, which has now been accelerated." September, Flipkart was looking to replace Bansal as CEO of the group.
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