By Anirban Sen on Nov 30, 2016 09:00 am November 30, 2016: A mutual fund managed by Morgan Stanley has slashed its estimate of Flipkart’s valuation down to just $5.54 billion, which is about two-thirds lower than the company’s peak valuation of $15 billion and nearly 40% lower than Morgan Stanley’s previous estimate. The mutual fund holds 1,969 shares in Flipkart and disclosed in a filing with the US Securities and Exchange Commission that it reduced the value of its holdings in Flipkart by about 38% to $52.13 a share, as of 30 September, down from $84.29 a share at the end of the June quarter. “Mutual fund mark-to-market is a p
If Flipkart’s valuation isn’t marked up quickly by at least some of its other investors, the company may have to accept a significantly lower valuation in its next funding round than its preferred price of $15 billion, experts said. Already, cab-hailing service Ola, another top Indian unicorn, is facing a so-called down round as it is likely to raise its next round at a lower valuation than the $5 billion it fetched in its previous round, two people familiar with the matter said. (Ola didn’t respond to an email seeking comment.) The Economic Times reported Ola’s funding round on Friday. “ New
Five mutual fund investors at Flipkart now value the company in the range of $5.54 billion to $11 billion. The marketplace, which is India’s most valuable Internet firm, last raised cash at a valuation of $15 billion some 18 months ago. The company plans to hit the market before the end of the year to raise $500 million to $1 billion in fresh capital. Morgan Stanley’s latest markdown comes at the end of the worst-ever quarter for Flipkart. Its monthly sales fell to a yearly low in July and it was overtaken on a standalone basis by arch-rival Amazon India in July and August. Flipkart bounced
If Flipkart’s valuation isn’t marked up quickly by at least some of its other investors, the company may have to accept a significantly lower valuation in its next funding round than its preferred price of $15 billion, experts said. Already, cab-hailing service Ola, another top Indian unicorn, is facing a so-called down round as it is likely to raise its next round at a lower valuation than the $5 billion it fetched in its previous round, two people familiar with the matter said. (Ola didn’t respond to an email seeking comment.) The Economic Times reported Ola’s funding round on Friday. “ New
Five mutual fund investors at Flipkart now value the company in the range of $5.54 billion to $11 billion. The marketplace, which is India’s most valuable Internet firm, last raised cash at a valuation of $15 billion some 18 months ago. The company plans to hit the market before the end of the year to raise $500 million to $1 billion in fresh capital. Morgan Stanley’s latest markdown comes at the end of the worst-ever quarter for Flipkart. Its monthly sales fell to a yearly low in July and it was overtaken on a standalone basis by arch-rival Amazon India in July and August. Flipkart bounced
