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  1. Fidelity marks down value of e-commerce giant Flipkart by 36 percent

Fidelity marks down value of e-commerce giant Flipkart by 36 percent

US-based mutual fund Fidelity Rutland Square Trust II has marked down the value of its holding in e-commerce firm Flipkart Online Services Pvt Ltd by around 36 percent.

By: | Mumbai | Updated: January 26, 2017 3:58 PM
The mark down comes as Flipkart faces increasing competition from Amazon.com Inc's Amazon India. (Reuters) The mark down comes as Flipkart faces increasing competition from Amazon.com Inc’s Amazon India. (Reuters)

US-based mutual fund Fidelity Rutland Square Trust II has marked down the value of its holding in e-commerce firm Flipkart Online Services Pvt Ltd by around 36 percent. Fidelity, in a filing with the US Securities and Exchange Commission dated Jan. 24, logged the price of its holding as $52.13 per share as of Nov 30, from $81.55 at the end of August.

That would value Flipkart at $5.58 billion, as per the available record of outstanding shares, Mint newspaper reported. Fidelity did not respond to a Reuters request for comment. Flipkart declined to comment. The mark down comes as Flipkart faces increasing competition from Amazon.com Inc’s Amazon India. It follows a string of similar moves by mutual funds and investors in the last year, local media have reported. Flipkart has undergone change in top-level management in recent months, something widely interpreted as renewed focus on profit margin over volume growth.

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However, Flipkart continues to retain its apex position as India’s most trusted e-commerce brand, in a nationwide consumer study titled the ‘The Indian E-tailing Leadership Index’, conducted by research firm Red Seer Consulting. According to the study, Flipkart, for the fourth time in a row, is ranked overall number one in the study, scoring the highest among all e-commerce platforms in India in areas like product selection, customer support, ease of return, refund and reverse pick up speed.   The e-commerce giant was also the fastest in terms of order fulfillment and delivery as seen in the latest Red Seer Delivery Performance Report. Riding on the strength of its owned supply chain unit Ekart, Flipkart clocked the shortest average delivery time, not just in the metros, but also across Tier I and II cities. A well-oiled backend has helped the company ensure quicker and hassle-free delivery, and has added to Flipkart’s overall performance metrics.

(With inputs from ANI)

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