Morgan Stanley further marks down Flipkart’s valuation by 3% to $5.39 bn

 

LATEST NEWS – US-based mutual fund Morgan Stanley has marked down the value of its investment in India’s largest e-commerce marketplace Flipkart by a further 3 per cent in the quarter that ended December 31.

The markdown comes despite Flipkart’s strong comeback during the festive season where it outperformed rival Amazon by a large margin. The exercise also hurts the company’s ability to woo investors to offer it fresh funding at its peak valuation of $ 15.2 billion.

Morgan Stanley valued each of its shares in Flipkart at $50.50 for the three months that ended December 31, down from $142.24 per share in June 2015. That effectively reduces the valuation of Flipkart by two-thirds to $5.39 billion from a peak of $15.2 billion when it last raised funding.

This is the sixth consecutive markdown in the valuation of Flipkart by Morgan Stanley, and follows a markdown of 38 per cent by the US firm in the previous quarter. Mutual fund investors Fidelity and Valic have also joined Morgan Stanley in marking down the value of Flipkart over the past few quarters.

The start of 2017 saw a massive top management rejig at Flipkart with Kalyan Krishnamurthy, a representative of investor Tiger Global, being elevated to the position of CEO. For the first time since the inception of Flipkart, neither founder Sachin Bansal or Binny Bansal was in operational control of their company. READ MORE

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