MF investor T Rowe cuts Flipkart valuation by 4% to $9.9 bn

Moneycontrol BureauClose on the heels of an aggressive markdown in Flipkart’s valuation by Morgan Stanley, another mutual fund investor T Rowe Price has trimmed the e-commerce major’s valuation, albeit a marginal 4.4 percent to about USD 9.9 billion, reports The Economic Times Wednesday.

Morgan Stanley had cut the online retail company’s valuation a massive 38 percent to USD 5.54 billion in November. Others like Fidelity, Valic and Vanguard have also marked down the value of investments in the company in the last year.

The latest markdown pegs the company’s per share value at USD 93.15 at the end of December quarter down from the September's USD 96.29 per share. This is a massive decline from per share value of USD 142.24 in 2015 when the company was valued at USD 15.2 billion.

This could mean trouble for the company which is already in the midst of a fierce battle with global player Amazon, all the while grappling with changes in top management. In December, after co-founder Binny Bansal stepped down from the post of CEO to assume a new position as Group CEO. Kalyan Krishnamurthy, former Managing Director of one of Flipkart’s biggest investor Tiger Global, took charge in his place as CEO in December.

A list of other top officials from its supply chain unit Ekart have also bid farewell following the reorganisation.