The valuation of homegrown e-commerce major Flipkart rose to $9.36 billion for the quarter ended September 30, 2017, as Morgan Stanley, one of its mutual fund investors, marked up the value of its holdings in the company by 24.6% to $88.1 per share, compared with $70.7 for the three-month period ended June 2017. There has steady mark-up in the valuation of Flipkart by Morgan Stanley since December 2016. Last year, it had marked down the value of its holdings in Flipkart for consecutive quarters till the valuation had reached to about $5.37 billion at the end of December 31, 2016. But since the beginning of this year, the valuation has been steady at $70.7 per share for two quarters in a row. In April this year, Flipkart raised $1.4 billion from Tencent, eBay and Microsoft. Later in August, it raised $2.4 billion from Softbank. According to the company, funds were raised at a valuation of $11.6 billion.
However, the valuation stated by Morgan Stanley is still below $10 billion which is a sharp contrast to what has been stated by the e-commerce major. Flipkart’s peak valuation was $15.2 billion in July 2015 when it had a funding round of $700 million. The latest mark up by Morgan Stanley has come days after Valic, another mutual fund investor, in its latest quarterly report marked down Flipkart’s valuation marginally to about $7.9 billion. Flipkart has always termed that the mark ups and mark downs from mutual funds investors a “theoretical exercise”.