In a breaking announcement yesterday there was a heavy rejig of top level executives at flipkart, Binny Bansal is replaced as CEO by Kalyan Krishnamuthy. Kalyan earlier was a investment banker . With banking experience Kalyan is supposed to bring controlled and focussed expansion to the Flipkart enterprise. The shake up is needed for cash drained Flipkart. Flipkart is at a juncture of making more lossess after each sale. They had already raised couple of rounds and made bubble out of it. The existing management were able to bring initial money but the current Indian etailing market requires disciplined approach to monetize on huge customer base. This require a regulatory and slow increment innovation with process improvement and focussed bottom line improvement. There is huge expectation from Kalyan to reshape the eTailing market and monetize on each sale.
India as a whole is going through interesting cashless society realm. This increase the customer base for eTailers like Flipkart. But, without a disciplined bottom line improvement, the company may not see profit and will have tough time to bring additional cash flow to sustain. The move will ensure confidence on the stakeholders . But, it is going to be a bumpy ride for flipkart and lot of hopes will be on Kalyan shoulder to bring his Banking expertise to etailers.
Last one year Kalyan made lot of changes to improve the overall performance of the organisation and some of them paid off and his keep it simple delivery mechanism has brought decent changes in the tactical delivery model. His expectation will be now to make good moves on strategy to compete with giants like amazon in the compliance monitored home turf in India. In the next quarter he has to restore faith to the existing stake holders and attract new investment to sustain the company.
we at IndianCEO wish him success on the new role.