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  1. Flipkart valuation slashed to $7.3 bn, this time by investor Vanguard Group

Flipkart valuation slashed to $7.3 bn, this time by investor Vanguard Group

Flipkart has received one more jolt with another of its investors Vanguard Group marking down the value of its holding by 33% to put the valuation of the e-commerce major at $7.3 billion. This follows the mark down by Morgan Stanley, earlier this week, which had put its valuation at $5.5 billion.

By: | Bengaluru | Published: December 3, 2016 6:20 AM

Flipkart has received one more jolt with another of its investors Vanguard Group marking down the value of its holding by 33% to put the valuation of the e-commerce major at $7.3 billion. This follows the mark down by Morgan Stanley, earlier this week, which had put its valuation at $5.5 billion.

The mutual fund company Vanguard Group in its regulatory filings, has put the value of its holding in Flipkart at $68.7 per share at the end of September, 2016 as compared to $102.6 in March this year. This has brought down the valuation of the company from $11 billion to around $7.3 billion.

Vanguard had initially acquired Flipkart shares in 2014 during its Series G fund raising and later at the time of the Series H round in December 2014. It had first bought down the valuation of its holding in Flipkart by 25% in June this year.

Flipkart has witnessed a series of marked down in its valuation since February this year which also includes its other investors such as Fidelity, Valic and T Rowe Price. However, there has certain markup in the valuation by some of the investors like Fidelity and Valic in Flipkart during the year though they brought it down later.

The biggest blow was when Morgan Stanley slashed the value of its holding in Flipkart by 38% thereby putting e-commerce major’s valuation at 5.5 billion from its earlier level of $11 billion. Morgan Stanley has valued its holding in Flipkart to $52.13 per share at the end of September quarter as compared to $84.29 in the June quarter. This was the fourth such markdown by the mutual fund investor during this year.

The losses for Flipkart has also been mounting over the years. Flipkart Internet, its marketplace unit, reported a loss of R2,306 crore for FY16 as compared to R1,096 crore in FY15. However, the revenue rose to R1,952 crore in FY16 as compared to R772.5 crore in FY15.

At its peak in July last year, Flipkart was valued at $15 billion when it raised $700 million in funding from investors such as DST Global, Tiger Global etc.These developments come amidst reports that Flipkart is looking to raise fresh round of funding, though the top management has reiterated that the company is well capitalised.

Flipkart CEO Bïnny Bansal in an earlier interaction with FE on the fund raise plans had said, “We are fairly well capitalised to invest in areas to drive growth in the future.”

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