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Last Updated : Jan 27, 2017 06:03 PM IST | Source: PTI

Foreign MF almost halves value of investment in Flipkart

In a regulatory filing on January 24, Fidelity reported value of its 52,096 shares in Flipkart at USD 2.7 million (USD 2,715,764), or USD 52.12 per share, as on November 30, 2016.


US-based mutual fund Fidelity Rutland Square Trust II has marked down the value of its shareholding in e-commerce firm Flipkart by almost half over a period of one year.


In a regulatory filing on January 24, Fidelity reported value of its 52,096 shares in Flipkart at USD 2.7 million (USD 2,715,764), or USD 52.12 per share, as on November 30, 2016.


Fidelity, which holds less than a percent in Flipkart, in its earlier filing had reported value of its holding at USD 5,416,421, or USD 103.96 per share, as on November 30, 2015.

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Flipkart did not comment on the development.


At the same time, Fidelity has reported around 13 percent increase in its investment made in online retail major Amazon.


Fidelity reported value of its 281,493 shares in Amazon.com at USD 211,280,201 implying value of USD 750.5 per share as on November 30, 2016.


Fidelity had earlier reported value of its 191,893 shares in Amazon.com at USD 127,570,466 as on November 30, 2015, which is USD 664.79 per share.


Moneycontrol's view

It is most likely that in 2017 most large e-commerce unicorns may raise monies at lower than their last valuation.


Flipkart has been devalued twice now this year post its organisational restructuring even as exodus of top management continues from the Bangalore based startup.


According to a report, Gurgaon-based Snapdeal is also in talks with its prime backer Softbank to raise funds at a lower valuation.


While the revaluations are a regular part of the exercise of listed corporations and investment banks, it is not likely that the ecommerce companies will raise investments higher than their maximum valuations.

For Flipkart, the onus now rests with the investor backed CEO and Tiger Global Management.

First Published on Jan 27, 2017 08:38 am
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