Morgan Stanley has marked down the value of their Flipkart shares by 15.5%, reducing the online retailer’s share values for the second straight quarter. The move brings Flipkart’s valuation to below $10 billion now – the company is now valued at $9.39 billion. Morgan Stanley had marked down the company’s share values by 27% in the last quarter. The December value fell from $142.24 a share, reported Livemint.
Earlier this month, two other smaller mutual fund investors marked down Flipkart’s share values as well. Fidelity and Valic had marked down Flipkart share values by 20%. Flipkart was valued at $15 billion in 2015 when investors including Tiger Global Management and Qatar Investment Authority put money into it.
Flipkart CEO Binny Bansal had earlier told Livemint, “We’ve not asked them (why they have marked down the valuation). They’re very small investors. It’s a global phenomenon; it’s not specific to Flipkart. The funds have their way of (calculating valuations) which isn’t clear. If in future they mark up our valuation by 30%, it’s not like we’re suddenly going to be happy.”
The markdowns come amid a funding slowdown for several Indian e-commerce companies that had raised massive funds in 2015.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!