Flipkart raises $1 billion, tries hard to sustain its over-valuation
Flipkart is trying all it can to sustain its high valuation.
On Monday, a Financial Express reported that India'a largest e-commerce company Flipkart has raised $1 billion (Rs 6700 crore) from Microsoft Corp, Ebay Inc and Tencent Holdings.
This round of funding means that Flipkart's valuation now stands at $10 billion as against $15.5 billion in 2015.
However, given the many rounds of key investors like Morgan Stanley and others slashing the value of their holding in the company, a $10 billion valuation is not half as bad.
Recently, Morgan Stanley Institutional Fund Trust – a mutual fund arm of Morgan Stanley revised value of its each share in Flipkart at $50.51 per share as of December 2016, down 3.10% from $52.13 per share of September 2016.
This revision valued Flipkart at $5.37 billion.
On January 20, 2017, T Rowe trimmed value of its holding in Flipkart's by 4%.
Later that month, Fidelity Investment also made a second revision in the value of its shareholding in Flipkart. The US-based mutual fund company trimmed value of its stockholding in Flipkart by 36.1%, reducing Flipkart's total valuation to $5.56 billion.