Corporate governance isn’t being ignored anymore: Flipkart's Kalyan Krishnamurthy

Corporate governance is a new buzzword across startups today, but for category-creator Flipkart, it has always been a priority. Kalyan Krishnamurthy, the man leading the ecommerce company, says that this is a period for governance correction at startups. But he is also quick to point out that we should not paint everyone with the same brush. 

“It is harsh to call every startup a fraud and every entrepreneur dishonest. Yes, there is a definite correction happening in governance because probably it was less of a priority in the past,” says Kalyan, CEO, Flipkart Group.

His views hold value when alleged corporate governance lapses have been a cause of concern among industry watchers. The situation has been further exacerbated by the liquidity crisis at edtech major BYJU’S. Slowly but surely, entrepreneurs are realising the perils of neglecting governance matters. 

Kalyan believes it is only a matter of time before governance becomes hygiene at startups.

“I am hoping that by 2025-26, governance, compliance, and ethics will become hygiene similar to growth and innovation. I am hoping it will be at a level where it does not make front-page news anymore. Collectively, we will all get there,” he says. 

Governance done right 

Flipkart entered the ecommerce space in 2007. From its early growth stage, the startup set up an independent board to give an unbiased perspective.

“Even about 12 years ago, we had independent board members who governed us. Not only was it investor-led, but we also made sure that the company was well governed," says Kalyan. 

But it is not just the board that can provide a bird's eye view of the business and the company’s functioning. Kalyan says that having a set of confidants and mentors to reach out to is equally important, something that even he does. 

“I am not shy about asking for help. I have mentors who I look up to and reach out to whenever I get stuck with a particular business problem or a particular people situation,” he explains. 

Having a parent company such as Walmart helps too. Kalyan says that the partnership with Walmart has been a learning experience in corporate governance. 

“We have benefitted a great deal from the partnership with Walmart, especially in corporate governance. And who better than Walmart, one of the world’s most successful companies and among the world’s most scaled-up companies,” he says.

Building a feedback loop

Entrepreneurs juggle multiple responsibilities and are often required to make tough business decisions.

To these entrepreneurs, Kalyan says, “Young leaders have to remember that they cannot just work for one stakeholder. They have multiple stakeholders, including consumers, sellers, employees, and government authorities. The day they appreciate that, they will automatically act responsibly.”

For the past several months, a lot has been said about the state of entrepreneurship in India, including some unsavoury obituaries for the sector. Kalyan wants to set the record straight and says that it is unfair to call everyone dishonest. 

“I think Indian entrepreneurs are building extraordinarily useful products for the consumers and they are doing it the right way. The sector has been over-indexing on innovation, creating useful products for Indian consumers, breaking the mould in several ways, and launching revolutionary products. Yes, there were gaps in corporate governance, but now that is being corrected,” he elaborates. 

Like fellow leaders of the sector, Kalyan believes pulling the entire sector down for challenging situations is out of order. After all, this is just a phase and this too shall pass.