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.

Written by FE Bureau

New Delhi

April 17, 2016 06:25 IST

There’s no doubt online sales are growing fast—in FY15, they were galloping at an estimated 400% for Flipkart and 500% for Snapdeal. But, obviously, the costs are overtaking sales. (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.

This article was first uploaded on April seventeen, twenty sixteen, at twenty-five minutes past six in the morning.