The management changes come amid talks that the company is preparing for an IPO in the United States.
In a major top management rejig at Flipkart, Binny Bansal will be the new CEO in place of co-founder Sachin Bansal, who would become executive chairman of India's biggest e-commerce company.
Binny till now was the Chief Operating Officer (COO). Sachin along with Binny launched Flipkart in 2007.
In a statement, Flipkart said Sachin "will provide strategic direction for Flipkart, mentor the senior leadership and look for new investment opportunities."
"Binny as the chief executive officer will now be responsible for operationally driving the company and be accountable for Flipkart's overall performance.
"All the business areas - Commerce, Ekart and Myntra will now report to Binny. All corporate functions including human resources, finance, legal, corporate communications and corporate development will also report to Binny," the statement said.
The management change comes amid talks of Flipkart, which is valued at around $ 15 billion, preparing for an IPO in the United States.
Binny Bansal, as the COO, was till now responsible for overseeing the company's critical supply chain and logistics business.
"Today, we are in a very strong leadership position with over 60 per cent market share of the m-commerce market, 50 million customers and clear leadership in smartphones and fashion.
"The journey ahead is equally exciting and challenging. Flipkart has all the necessary ingredients of brilliant talent and great technology to win this next phase as well," Binny Bansal said the statement.
Additionally, the Bengaluru-based company also announced that Mukesh Bansal will continue to lead the company's commerce platform, its core business, but will also take additional charge of Flipkart's burgeoning ads business.
He will also continue his role as the chairman of Myntra, the online fashion retail business acquired by Flipkart for a reported $ 370 million, in 2014.
The company will continue to build world-class customer experience, expand supply chain infrastructure to reach all parts of India, drive innovations in mobile commerce and bring in disruptive technologies, Binny Bansal said.
"E-commerce in India is going through its most exciting phase and Flipkart has played a pioneering role in shaping this very remarkable journey. We believe Flipkart can play a transformational role in improving commerce in India and improve the quality of lives of millions of people across the farthest corners of the country," Sachin Bansal said.
"In the next phase of journey, it will be our endeavor to fulfil this responsibility and prove India can produce a world-class internet company that can outshine any global behemoth. We also want to continue to play a pivotal role in shaping the internet and the commerce ecosystem of India," he added.