Mutual fund investors Fidelity and Valic have marked down the valuation of the country’s largest e-commerce player, Flipkart.
The two marked-down valuations has brought down Flipkart’s total valuation to $10.24 billion; its highest valuation so far has been $15.2 billion.
Big Billion DayThe marked-down valuations comes close on the heels of Flipkart’s Big Billion Day festival sale, which the company claimed was a huge success. The valuations were listed in a recent filing with the US regulator Securities and Exchange Commission.
Fidelity marked down Flipkart’s value by 3.25 per cent to $81.55 per share in the quarter ended August, while Valic marked down the value of the shares it invested in Flipkart by 11.3 per cent to $95.84 per share during the same quarter.
The current valuation mark-down comes at a time when Japan’s SoftBank Group Corp, in a filing, disclosed that it was writing down about $555 million in cab-hailing firm Ola (ANI Technologies Pvt Ltd) and e-commerce marketplace Snapdeal (Jasper Infotech Pvt Ltd).
Fund-raisingFlipkart founders Sachin and Binny Bansal have maintained that the valuation downgrade do not reflect the strength of the company. According to certain reports, Flipkart is back in the hunt for raising cash, and this time it could be as high as $1 billion. The founders have however denied that they are planning to raise funds in the immediate future claiming that they have enough to last for another couple of years.
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