Flipkart Value Tumbles by 4 Bn US Dollars
Institutional Fund Trust Mid Cap Growth Portfolio, a mutual fund managed by Morgan Stanley has marked down Flipkart’s valuation by 27 percent from $142.24 per share to $103.97 per share, thereby bringing down the firm value from $15.2 billion to $11 billion for the start-up.
Morgan Stanley fund has recently reduced the value of its stake in other tech companies like Palantir Technologies by 32% and Dropbox by 25%.
This news comes at a time when the market sentiments are at a low and the current business models of the tech companies being revisited. Indian eCommerce companies together have reported to have lost more than Rs 8000 crore. Flipkart has raised more than $3.5 billion in funding so far. There have been recent reports regarding Flipkart approaching Chinese e-commerce giant Alibaba for fresh funds which also faced value mark-down.