According to recent filings, Morgan Stanley has marked down Flipkart shares by 27 percent. This news comes at a time when there have been lot of talks related to slowdown in startup valuations.
In December 2015, Morgan Stanley valued Flipkart’s shares at $103.97 per share, down from around $142.24 per share as of June 2015. In December 2014, its shares were valued at $117.96 per share.
Last week, Flipkart had said that the company’s valuation stands at $15.2 billion. After this 27% markdown in its shares, the company’s valuation now stands at $11 billion.
Morgan Stanley had invested in the Indian eCommerce firm in the company’s Series D round of funding in October 2013. It that funding round, Flipkart had raised $360 million in two tranches.
However, Flipkart is not the only company in which Morgan Stanley has marked down its investments. In Palantir, a data crunching startup, it marked down its shares by 32% and in file storage company Dropbox by 25%. The reason for the markdown is still unclear.
The markdown in the company’s valuation comes at a time when the company is reportedly in talks with new investors, including China’s Alibaba which has invested in Snapdeal and PayTM, to raised around $1.4 billion.
In order to turn profitable, it recently shut down its grocery delivery service named Nearby which offered hyperlocal delivery services in Bangalore. As per some reports, the company is planning to go for IPO in the coming 12 to 18 months. In order to win investors confidence, it has to generate revenues at some point.
Also, there have been many major changes in its senior level management. Sachin Bansal became the executive chairman of the company while Binny Bansal become the company’s CEO.
Apart from that, its head of commerce, Mukesh Bansal, who joined the company after Flipkart acquired his fashion retail eCommerce company Myntra, also resigned along with Ankit Nagori, Chief Business Officer.
It is believed that this is just the beginning of the corrections in the valuation of many Indian startups. Many more markdowns are expected this year. Interestingly, Snapdeal’s valuation increased in its recent $200 million funding round.