1. Rowe Price lowers Flipkart valuation

Rowe Price lowers Flipkart valuation

This is the second such instance for Flipkart, with the earlier mark down by Morgan Stanley, which lowered the valuation of the e-commerce venture from $15 billion to $11 billion.

By: | New Delhi | Published: April 17, 2016 6:25 AM
flipkart T Rowe Price, one of the investors in Flipkart, has brought down the value of its investment in the e-commerce major by 15%, as per filings made by this mutual fund. (Reuters)

T Rowe Price, one of the investors in Flipkart, has brought down the value of its investment in the e-commerce major by 15%, as per filings made by this mutual fund. This is the second such instance for Flipkart, with the earlier mark down by Morgan Stanley, which lowered the valuation of the e-commerce venture from $15 billion to $11 billion. As per filings made with the US SEC, T Rowe Price has marked the value of each Flipkart share at a price of $120.69 per unit at the end of March quarter, as compared to $142.26 in the December quarter. T Rowe Price is one of the investors in Flipkart that participated in the fund raising round in December, 2014.

This comes at a time when Flipkart is scouting for additional funds and has not been able to successfully close negotiations with any existing or new investors. Flipkart was estimated to be valued at $15 billion in June 2015, when it raised $700 million from Tiger Global and other investors. This development could mean that the company  is overvalued.

Tags: Flipkart
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