The Rise and Exit of Sachin Bansal: The Founder of Flipkart
Sachin Bansal is one of the most influential entrepreneurs in India, who co-founded Flipkart, the country’s largest online retailer, with his friend Binny Bansal in 2007. He led the company as its CEO from 2008 to 2015, and as its executive chairman from 2016 to 2018. He played a pivotal role in shaping the Indian ecommerce industry, attracting investments from global players, and turning Flipkart into a unicorn with a valuation exceeding a billion dollars. His entrepreneurial journey exemplified the potential of the Indian startup ecosystem.
Sachin’s exit from Flipkart
However, in 2018, Sachin Bansal made a surprising and controversial exit from Flipkart, after the company was acquired by US-based retail giant Walmart for $16 billion. He sold his entire 5.5% stake in the company for about $1 billion, and signed a non-compete clause with Walmart, which restricted him from starting or investing in any business that directly or indirectly competed with Flipkart for a certain period of time.
There are different versions of the story behind Sachin Bansal’s exit from Flipkart, depending on who you ask. Some sources say that Sachin Bansal wanted to stay on board and play a more active role in the company, but he faced resistance from the Flipkart board, led by Tiger Global Management’s Lee Fixel, who had a strained relationship with him. The board members believed that Kalyan Krishnamurthy, who was appointed as the CEO of Flipkart in 2017, had earned the right to continue as the boss, and that Sachin Bansal had lost his relevance and influence in the company.
Other sources say that Sachin Bansal was unhappy with the terms of the deal with Walmart, which valued Flipkart at a lower price than he expected, and that he wanted to negotiate for a better deal and a bigger role. However, he had a fallout with Walmart as he did not get the rights and the role he wanted. He also had disagreements with Binny Bansal, his co-founder and friend, who decided to stay with the company and take up the role of the group CEO.
Whatever the reason, Sachin Bansal’s departure from Flipkart marked the end of an era for the Indian ecommerce industry, and left many wondering what he would do next.
Sachin’s new Venture —
Sachin Bansal did not waste much time after leaving Flipkart. He quickly moved on to pursue his new interests and ambitions, mainly in the financial sector and the mobility space. He also became an active angel investor and mentor for other entrepreneurs in the country.
In December 2018, Sachin Bansal registered a new company called BAC Acquisitions Pvt Ltd, along with his friend Ankit Agarwal, with the aim of acquiring, developing, and making new technologies available for innovation across sectors such as data sciences, healthcare, energy, media and entertainment. In January 2019, he invested $7 million in his new venture.
Since then, Sachin Bansal has made several investments in various startups, such as:
- $51 million in Ather Energy, an electric scooter maker
- $92 million in Ola, a cab aggregator service
- $20.8 million in VOGO, a ride-sharing service
- $250 million in IndoStar Capital Finance, a non-banking finance company
- $14 million in Altico Capital, a real estate-focused lender
- $23 million in U Gro Capital, a small business lending platform
- $3.4 million in Kissht, a consumer lending startup
- $6.8 million in Navi Technologies, a fintech startup
In September 2019, Sachin Bansal made his biggest bet yet, by acquiring 94% stake in Chaitanya Rural Intermediation Development Services (CRIDS), a microfinance company, for $104 million. He also took up the role of the CEO of the company, marking his comeback as an entrepreneur. He said that his goal was to build a universal bank that would cater to the underserved segments of the society.
Sachin Bansal has also been vocal about his views on various issues related to the Indian startup ecosystem, such as data privacy, digital taxation, foreign direct investment, and regulatory policies. He has also been supportive of the government’s initiatives such as Digital India, Startup India, and Make in India.
To know more about the Success Story of Sachin Bansal and the Recent Clash between ED and Navi, CLICK HERE.
