Even as it looks to raise $1 billion in fresh capital to compete with rival Amazon in India, Flipkart continues to face valuation markdowns by its mutual fund investors.
Two of its investors, Valic and Fidelity, who earlier marked up the value of their shares in the company, have again marked down their shares in Flipkart by 11.3%, and 3.2%, respectively, for the quarter ended August, according to a report in The Economic Times, which puts the firm’s valuation between $8.7 billion and $10.25 billion.
Before their markup, in May, Valic marked down the value by 29.4% as of February 2016 compared with August 2015. Fidelity marked down Flipkart’s value by as much as 39.6% for the same period.
Although Valic and Fidelity together hold a small amount of stock—worth less than $6 million— they are not the only investors to do so.
The latest is a part of series of markdowns that the company saw in the last year, which, when it last raised funds, was valued at $15 billion in July 2015.
In the April-June quarter, Morgan Stanley marked down the value of its shares by 4.1$% and T. Rowe Price marked down the value of its shares by 20%.
For the quarter ended March, US-based investment firm Vanguard Group marked down the value of Flipkart shares by 25%, from $136.87 as on 30 September 2015 to $106.65 as on 31 March 2016, according to regulatory filings with the US Securities and Exchange Commission (SEC). Morgan Stanley marked down its stake by 15.5%, in the same quarter.
Flipkart, though, has always maintained that these markdowns do not affect it. “The way we look at it is that when we raise money, that’s when we get a valuation,” chief executive officer Binny Bansal told Mint in an interview on 24 May about earlier markdowns.
Flipkart couldn’t immediately be reached for comment.
This article was first published on Livemint.com