Photo credit: Steve Jurvetson.
Flipkart, India’s poster child for all things startups and ecommerce, is now worth just US$6 billion, a huge fall from its once-vaulted status of being a US$15 billion company.
A mutual fund managed by Morgan Stanley slashed value of its Flipkart shares by 38.2 percent, The Economic Times said.
This is on top of the 27 percent cut in February.
This is Flipkart’s ninth markdown by its investors. Mutual funds by T. Rowe Price, Vanguard Group, Fidelity, and Valic have each lowered their valuations on the company in the past.
See: Flipkart’s valuation marked down by investors for the eighth time
The markdowns come at a time when Flipkart is said to be in talks with the world’s largest retailer, Wal-Mart Stores Inc, to raise funds worth US$1 billion. The ecommerce company has been fighting to maintain its lead in the Indian ecommerce market as Amazon nips at its ankles.
Many established startups in India have been struggling under the weight of their steep valuations, which are effectively discouraging investors from pumping in more money in these companies. Ola, at a valuation of around US$5 billion, is also widely expected by industry insiders to take a cut in valuation when it next raises funding.
Source: The Economic Times
This post Flipkart now worth just $6b, says Morgan Stanley appeared first on Tech in Asia.
from Tech in Asia https://www.techinasia.com/flipkart-valuation-chopped-again
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