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 Bansal will continue with Flipkart for the next few weeks, Ankit Nagori will be transitioning his role to Binny Bansal over the next quarter. Mukesh Bansal had joined Flipkart when it acquired his fashion portal Myntra in May 2014 for an estimated R2,000 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 R740 crore on revenues of R758 crore, with the margin of loss rising to 98%. Myntra appointed McKinsey director Ananth Narayanan as its CEO in July last year.
Flipkart’s losses in FY15 were close to R2,000 crore — this includes Flipkart Internet and Flipkart India. Mukesh Bansal said he was taking a break of three to six months after which he would start a venture of his own. In a mail sent to employees, which FE reviewed, Bansal said, “My incredible journey with Myntra and Flipkart comes to an end. I will transition my role to Binny and will be available as long as required to ensure a smooth and successful transition. I will continue to be available from outside as a sounding board and mentor to the team.”
“It is the right time for me to move on, as there is great business momentum. I want to withdraw myself and give space to other leaders to emerge within the company,” Mukesh Bansal told FE.
According to the mail to his employees, Myntra’s market share has increased to 60% over the last two years and also contributes around 60% to the m-commerce market share for the group.
“Last year we set out to build the best leadership team in India and we have done that. With this team in place and the momentum on multiple fronts, the commerce platform is in great hands,” Mukesh added.
Commenting on the development, Harish HV, partner at Grant Thornton, said, “I am told that the founders (at Flipkart) hold less than 10% 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.”