 "Flipkart")
The valuation woes of Flipkart continued as a US mutual fund managed by Vanguard Investment marked down the value of its shares in the company by 25%.
This is the sixth mark down for the largest e-commerce marketplace of the country in as many months.
The mutual fund marked down the value of its shares to $102.6 as on March 2016, from $136.87 in December 2015.
Vanguard’s value of its shares in Flipkart is $6 million, the fund disclosed to regulators last month.
Flipkart has maintained that investment cycles have bumps and internet-based sectors were undergoing one currently.
“Overall, these are financial cycles that happen in the whole world. I think the internet sector itself is going through a down cycle, but as the positive cycles don’t last forever, the down cycles also don't last forever,” said Sachin Bansal, chairman, Flipkart.
Morgan Stanley marked down its investments twice, while T Rowe Price, Fidelity and Valic have also marked down their investments in the e-commerce company.
In July 2015, Flipkart was valued at $15.2 billion, when it raised funds last. The estimated valuation hovers between $9.8 billion and $11.4 billion, based on the marked downs by these investors.
