Flipkart owners Binny and Sachin Bansal are no longer billionaires
April 17, 2017
Flipkart owners Binny and Sachin Bansal are no longer billionaires. This comes right after the e-commerce giant acquired Ebay India for $11.6 billion following the latest fund raising round led by Tencent, Microsoft, Ebay amounting to $1.4 billion.
In 2015, the Bansals made it up to the Billionaire kingdom but 2016-17 has proven to be a hard year for them as the company’s valuation dropped a little over 23% to $11.6 billion. The Bansals were officially the youngest Billionaires of India but presently they dropped down 55 positions from $1.3 billion to $650-750 million according to Hurun Global Rich List for Indian Billionaires.
Bansals both hold a 7.5% stock of the company each and are out of operational roles now. Sachin Bansal is the Executive Chairman while the ex-CEO Binny Bansal is now group CEO after being replaced by Kalyan Krishnamurthy.
The primary cause behind their sharp decline is the tough year 2016 wherein the mutual fund investors marked down its valuation and they were found struggling to raise funds.
While India lost 11 of its billionaires post demonetisation, it also catapulted some firms with a major escalation and the most eminent one being the country-wide famous payment platform, Paytm, resulting in a 162% increase in its valuation bringing its CEO Vijay Shekhar Sharma into the Forbes’ India list with a wealth of $1.3 billion.
India is one of the most competitive domains in the world. And while no one really saw it coming but demonetisation did rock our country with a big blow and e-commerce giants like Amazon, Flipkart and Snapdeal had to suffer losses. But at the same time India houses more than 132 billionaires of the world and currently, in the Forbes’s Global Rich list 101 billionaires are from India.
Other significant competitors to the higher spot are Acharya Balkrishna of Patanjali ayurved with $3.8 billion and new entrants like Vijay Shekhar Sharma ($1.3 billion), Directi’s Divyank Turakhia ($1.2 billion), industrialists Nusli Wadia ($2.3 bn) and Pawan Munjal ($3.1 bn) and Rana Kapoor (Yes Bank) with $1.1 billion.
While the top five in India are still unbeatable – Mukesh Ambani (Reliance Industries Ltd) with $23.2 billion, Lakshmi Mittal (ArcelorMittal) with $16.4 billion, Azim Premji (Wipro) with $14.9 billion, Dilip Shanghvi (Sun Pharma) with $13.7 billion, Shiv Nadar (HCL) with $12.3 billion according to Forbes’s India List.