Mukesh Bansal, Flipkart’s head of commerce and founder of Myntra, resigned on Wednesday. Ankit Nagori, the chief business officer at Flipkart, also quit. The moves come soon after Binny Bansal co-founder was made chief executive officer and Sachin Bansal elevated to the role of executive chairman.
While Mukesh will continue with Flipkart for the next few weeks, Nagori will be transitioning his role to Binny over the next quarter. Mukesh Bansal had joined Flipkart when it acquired his fashion portal Myntra in May 2014 for an estimated Rs 2,000 crore. Mukesh spearheaded Myntra even after the buyout and had said recently that the company would turn profitable by 2017, by slashing discounts. In FY15, Myntra, by some estimates, reported a loss of Rs 740 crore on revenues of Rs 758 crore, with the margin of loss rising to 98 per cent. Myntra appointed McKinsey director Ananth Narayanan as its CEO in July last year.
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Flipkart’s losses in FY15 were close to Rs 2,000 crore — this includes Flipkart Internet and Flipkart India. Mukesh Bansal said he was taking a break of 3-6 months after which he would start a venture of his own.
Commenting on the development, Harish HV, partner at Grant Thornton, said, “I am told that the founders (at Flipkart) hold less than 10 per cent stake each. In that case, it will be the investors who will decide on the strategic changes in the company rather than the founder or CEO having to decide.”
The company also said that Ankit Nagori, chief business officer, Flipkart, is also moving on to start an entrepreneurial venture in the sports domain. “Ankit has played an instrumental role in introducing newer initiatives … Sachin and Binny will be supporting Ankit in his new initiative and will be his first investors,” it was quoted by PTI as saying.
[with inputs from PTI]