India’s most valued internet company has been devalued—yet again. In one of the most drastic markdowns for Flipkart so far, one of its investors, a mutual fund managed by Morgan Stanley, slashed the Bengaluru-based e-commerce major’s value to just $5.54 billion (Rs38,030 crore). At its peak in May 2015, Flipkart was valued at $15.5 billion.
“The point to note is that Flipkart’s valuations are still higher than what the investors had entered the company at,” said Sanchit Vir Gogia, chief analyst and CEO at research and advisory firm, Greyhound Research.
“So it is a mistake to assume that investors’ money is going down the drain. This is not downsizing, it is just a mere correction, which was much needed,” added Gogia.