Recent upheaval in the Organisational Structure:

“The organisational structure of Flipkart will continue to evolve, and you could see a new structure
every few years, or possibly even sooner. The rate of change that technology is driving in our lives is
very rapid. This change would mean that businesses and companies will need to remain agile and
change rapidly in line with the need of the day. If an organisational structure is far from the reality of
what the business is or what the world is, it will get outdated.”

-Mekin Maheshwari, chief people officer at Flipkart (Nov’2014)

Flipkart saw a series of senior-level exits since 2016. Besides CXO-level exits—Flipkart’s chief product
officer, chief financial officer, chief technology officer and chief business officer quit last year—the
company has also seen a strong churn in the second layer of leadership as well. There has been a
slew of exits at the level of senior vice president and vice president since the beginning of this year.
Some recent organisational changes are:

In 2016:

 Binny Bansal became the new CEO replacing Sachin Bansal due to ‘performance issues.’
 Multiple Top Management Exits Such as
o Punit Soni – Chief Product officer
o Mukesh Bansal – CEO and founder of Myntra
o Ankit Nagori – Chief Business Officer
o Sanjay Baweja – Group CFO
o Rajinder Sharma – Legal head

In 2017:

 Appointment of CEO Kalyan Krishnamurthy, a former executive of its biggest investor Tiger
Global. This will increase the control of the Tiger Global in the Flipkart.
 Elevation in the status of Sriram Venkataraman from chief financial officer of its commerce
platform as the Group CFO. He will replace Sanjay Baweja who quit the company in the later
part of 2016.
 Similar pattern was followed in Elevation in the status of Engineering Head Peeyush Ranjan
to the role of Group Chief Technology Officer.
 Pramod Jain, who was the head of taxation, was given additional responsibility as the head
of risk management, assurance and compliance.

Devaluation of Net worth by Investors (2016):

The first significant markdown by its investors Morgan Stanley, Fidelity; Valic apart from T. Morgan
Stanley cut it to the lowest valuation of $5.54 billion from $15 billion peak valuation. This was the
time when Flipkart was the only Indian Ecommerce which was taking head on fight for the Indian
market with Amazon.

It led to a decrease in the market share of Flipkart to 34 percent from 42 percent. On the other
hand, Amazon increased its base from 13 percent to 21 percent.
Acquiring eBay India (2017):

The deal consists of a share in the Flipkart equity and $500 million for eBay. With this, Flipkart will
own and operate the eBay.in business. eBay and Flipkart will jointly pursue cross-border trade
opportunities to make eBay’s global inventory accessible to more India consumers, while eBay’s
millions of active buyers globally will have access to more unique Indian inventory provided by
Flipkart.

Raising Big funds from Foreign Investors:

It raised $1.4 billion from Tencent, eBay, and Microsoft at $11.6 billion valuations. Tencent
contributed $700 million followed by eBay with $500 million and rest by Microsoft. This is still less
than the peak raising of $15 billion in 2015.