Bansals back in game at Flipkart with Son’s help
After raising $2.5 billion from Soft Bank’ s Mas a yoshi Son and his Vision Fund, Sac hi nB ans al and Binny Bans al are back in the driving seat at Flip kart, the company they founded overadecadeago.
The investment will make Son, through his Vision Fund, one among the largest shareholders in Flip kart and will lower the strength of Tiger Globalon its board. Around$1.5 billion in the latest deal is being used to purchase shares from existing investors, largely from Tiger. The move could se ether oleofKa ly an Krishna mu rt hy, a former director at Tiger and the current CEO of Flip kart, beingdiluted.
Krishna mu rt hy was brought in by Tiger' s Lee Fix el to help Flip kart fight off an aggressive Amazon. He played a role in getting long-term investors such as Ten cent and Vision Fund, while giving a partial exit for Tiger in its biggest investment
inIndia.“Kalyan was definitely Tiger’ s man and the founders had been side lined. It’snot assured that Soft Bank will have trust in him despite him being a good performer ,” said a person close to the development at Flip kart .“The founders have and are definitely looking at making a come back .” Ever since discussions of SoftBank picking a stake in Flipkart, through its failed merger of Snapdeal, began six months ago, the co-founders have been making their presence felt. In the release announcing the Vision Fund’s investment in Flipkart, Krishnamurthy’s voice was all but missing. Sac hint urned vocal on his contribution to building Flip kart’ s in house brand for the masses—Billion, which is targeted at bringing first-time customers onto its platform. Binny’ s role in running the company’ s logisticsunit, eKart, wasrenewedafter the exit of Nit in Seth. Moreover, both founders have strong follow er base in thecompany, whocriticize Krishna mu rt hy for putting innovation on the back burner. While Krishna mu rt hy’ s position at Flip kart is unsure, hisrolein reviving the company can not be questioned. Right from the 2016 festive season sale— when he brokered few but crucial partnerships with brands and rallied prominent sellers to offer discounts— heensured Flip kart not only stayed ahead of its rival Amazon butthrived. Inthemonthsthat followed, Krishnamurthy has been instrumental in helping Flip kart shed bulk. Taking a more sales-first approach, itcanbesaid that he has executed his taskperfectly— getting Flip kart fit enough for long-term investors such as Soft Bank to take an interest and give Tiger anexit.