Flipkart, also known as Amazon’s rival in India, is shaking up its leadership at a particularly interesting time for the eCommerce giant.
News broke yesterday (Jan. 11) that Sachin Bansal, Flipkart CEO and cofounder, would be stepping down from the role. Its other cofounder, Binny Bansal, the company’s COO, will be moving into the top spot. As noted in a Reuters piece, the cofounders are not related, and both come from Amazon.
What’s interesting, of course, for the firm is that there’s been plenty of chatter in the industry about the possibility of going public sometime soon in the U.S., which would be a major move from an Indian company looking to make its mark abroad.
But for this eight-year-old eCommerce firm, the prospect of going public has been tossed around but only as a concept. This new CEO shift, however, has some questioning if this is a sign that the company is looking to gear up for its IPO plans. An unnamed source told Reuters that having the CEO and chairman title be split into multiple roles allows the company to focus on its plans long-term, which would, of course, mean a public debut possibility.
“Today, we are in a very strong leadership position, with over 60 percent market share of the mCommerce market, 50 million customers and clear leadership in smartphones and fashion,” Binny said in the company statement. “The journey ahead is equally exciting and challenging.”
But with Amazon as its rival, this could be an uphill battle for Flipkart, especially if its looking to join the U.S. market on a larger scale. Amazon.in has become the most visited eCommerce site in India, Amazon noted in a release last month.
The big news for Amazon comes following a report highlighting just how lucrative an opportunity Indian eCommerce might shape up to be. According to the Boston Consulting Group, the eCommerce industry in India is expected to touch $60 billion–70 billion (roughly Rs. 3,99,360 crores–Rs. 4,65,920 crores) by 2019, up from $17 billion in 2014.
In 2014, Amazon announced an investment of $2 billion to expand its operations in India. The global eCommerce giant also recently committed to re-upping those investments in what they consider a key emerging marketplace.
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