According to the latest Hurun India Rich list, the founders of Flipkart Sachin and Binny Bansal have worn down drastically and they have been out of the list of the Billionaires’ this year. The wealth of e-commerce major Flipkart’s has seen a major fall in the last year. The newest rankings by this financial research firm that focuses on the wealth position of the high net of the individuals in China and India, confirms that the Bansals dropped 55 positions from the previous year in their wealth. The wealth of the founders of the Flipkart declined 42% to Rs. 5,400 crore (over $800 million) from Rs. 9,010 crore (over $1.3 billion) last year.
There were many billionaires who have lost their billionaire status this time since demonetization. Some of the well-known people who failed to make the entry into the list are Prathap C Reddy & family of Apollo Hospitals, Gautam Thapar of Crompton Greaves and Nilima Motaparti of Divi’s labs. This list is based on the share price performance of the companies after the demonetization. On the other hand, Twenty-seven billionaires have been added to the list year. In this 27 entrants, Archarya Balakrishna of Patanjali Ayurved entered the list with the wealth of $3.6 billion, followed by Nadir B Godrej and Smitha V Crishna. The Paytm founder also comes on the list with $1.5 billion.
Many who have seen their wealth declining after the demonetization are Chirayu R Amin & family of Alembic Pharma, Salin Singhal & family of PI Industries, Prakash Chauhan & family of Parle Agro group, Habil Khorakiwala of Wockhardt, Devendra Jain of Gujarat Fluorochemicals and Prithviraj Kothari of RiddiSiddhi Bullions. The biggest Businessman of India, Mukesh Ambani, retained his position as the richest Indian with the estimated wealth of $26 Billion in the recent list. He’s also in the 28th Rank on Hurun’s Global rich list and the only Indian in the Top 50.
The founders of the Flipkart Bansals’ entered the Hurun’s list for the very first time earlier this year when the research firm estimated that they each were worth around $1.3 billion in January this year. They also debuted on the business magazine Forbes India rich list last year at number 86 with $1.3 billion each. The managing director and chief researcher of Hupun Report India, Anas Rahman Junaid said, “It is more about how the company performed rather than individuals” On why Bansal’s came down on the list. “We have factored in the heightened competitive pressure in the e-commerce market with Amazon’s decision to invest $5 billion in India. This was not there last year,” he said. “All matrices available in terms of GMV, sales and burn rate suggest there is a competitive pressure on Flipkart and this is supported by markdowns on its valuation by the investors,” added Junaid.
Binny Bansal had taken over as Flipkart’s CEO whereas Sachin Bansal, who was holding the chairman and CEO positions, was moved to the role of executive chairman in January this year. Afterward, Sachin Bansal revealed that he had stepped down from the post of the Company’s CEO and took up the chairman’s position after missing the performance goals. It was disclosed by Bansal at a town hall meeting with Flipkart employees on 19 August. The compensation figures to the Flipkart Founders Sachin and Binny Bansal could not be gathered as their remuneration is believed to tie with some international companies. The Demonetization factor and the unsecured market impacted the e-commerce founders badly. It will be interesting to see what Bansals’ does to again come on the right track and to be on the list of Billionaires again.