Flipkart now worth just $6b, says Morgan Stanley

Photo credit: Steve Jurvetson.

Flipkart, India’s poster child for all things startups and ecommerce, is now worth just US$6 billion, a huge fall from its once-vaulted status of being a US$15 billion company.

A mutual fund managed by Morgan Stanley slashed value of its Flipkart shares by 38.2 percent. The fund currently holds 1,969 shares in Flipkart that are collectively valued at $102,644. (H/t to The Economic Times for spotting this first.)

The latest cut in valuation is on top of the 27 percent cut in February.

Flipkart says it’s not bothered.

This is Flipkart’s ninth markdown by its investors. Mutual funds by T. Rowe Price, Vanguard Group, Fidelity, and Valic have each lowered their valuations on the company in the past.

See: Flipkart’s valuation marked down by investors for the eighth time

The markdowns come at a time when Flipkart is said to be in talks with the world’s largest retailer, Wal-Mart Stores Inc, to raise funds worth US$1 billion. The ecommerce company has been fighting to maintain its lead in the Indian ecommerce market as Amazon nips at its ankles.

See: Indian unicorn Flipkart’s top-level exodus snowballs

Many established startups in India have been struggling under the weight of their steep valuations, which are effectively discouraging investors from pumping in more money in these companies. Ola, at a valuation of around US$5 billion, is also widely expected by industry insiders to take a cut in valuation when it next raises funding.