Fidelity Rutland Square Trust II, a mutual fund investor in Flipkart, has marked up the valuation of India’s largest e-commerce company by 2.7 per cent to $84.29 per share in May, against a value of $82 apiece in February, according to latest filings.
The latest filing made by Fidelity dated July 26 pertains to the reporting period ending May 31. Fidelity’s move is in contrast with recent ones wherein Flipkart’s valuation was marked down six times, including once by Fidelity, during this calendar year itself.
The marking up comes two months after Fidelity lowered the value of Flipkart shares it owns by almost 40% to $82 apiece as of 29 February 2016 from $135.8 in August last year.
Several of Flipkart’s other investors such as Morgan Stanley, Valic Co I, T Rowe Price and Vanguard have reduced the e-tailer’s valuation over the last six-to-seven months.
Flipkart CEO Binny Bansal had previously said that (markdowns are) a theoretical exercise by small investors and they actually come into play when a company goes for a fresh round of fundraising.
Earlier this week, Flipkart’s unit Myntra has acquired fashion portal Jabong for $70 million. The deal has tightened Flipkart’s hold over the fashion category, which is the second largest segment for online retailers after smartphone and electronics.