Morgan Stanley Mutual Fund Trust, a mutual fund investor in Flipkart Ltd, has lowered its estimate of the online retailer’s valuation to $9.39 billion. This is the second consecutive markdown by Morgan Stanley, after it had marked it down by 27 per cent in the previous quarter.
Morgan Stanley has marked the value of their Flipkart shares at $87.9 per share as of March 2016, down from $103.97 per share as of December 2015 and down 38.2 per cent from $142.24 per share as of June 2015. The markdown pegs Flipkart’s valuation at $9.39 billion, as compared to the $15.2 billion when it last raised capital in July 2015.
This follows a series of markdowns by other mutual funds that own Flipkart shares. Two of Flipkart’s mutual fund investors Fidelity and Valic had further marked down the value of their holdings in the company by 20 per cent earlier this month while a T Rowe Price-managed mutual fund had marked down their holdings by 15 per cent last month.
Morgan Stanley had picked up shares in Flipkart as a part of its series D round of funding in 2013, when the Bengaluru-based e-tailer had raised $360 million in two tranches. It had also picked up additional shares when Flipkart raised a massive $1 billion investment in August 2014.
These markdowns however comes at a time when Indian Internet companies are facing a funding slowdown, after an exhuberant funding levels last year.