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Flipkart’s Market Valuation Falls Down

Sohit Sharma

    Flipkart’s Market Valuation

The India’s largest E-commerce company Flipkart is facing a major downfall in the market valuation. Just when the new CEO Kalyan Krishnamurthy joined the E-commerce company, he had to experience the downfall of the capital valuation.

Flipkart’s capital valuation is worth $10 billion which is not at all a good sign for the E-commerce company. Flipkart is also keen on raising huge capital investments in the coming months in order to increase its valuation.

As per a report from the US Securities and Exchange Commission (SEC), the value of shares of Flipkart climbed down to $93.15 from $96.29 by the end of December 2016. In the year 2015, Flipkart’s share price was $135.15. Optimum Funds has 18,850 shares in five different categories of A, C, E, G and H.

Just a week ago, Morgan Stanley declared Flipkart’s valuation at $5.39 billion. Morgan Stanley’s holdings in Flipkart declined to $50.51 in December 2016 compared to $52.13 in the month of September 2016. Later, in January 2017, a company owned by Fidelity Investments also declined the investment down by 36.1%. The total value of the marketplace is valued at $5.56 billion.  There are other American mutual funds of companies such as T Rowe, Valic Co, Fidelity and Vanguard Group fallen down as well.

The encouraging news is that Flipkart had crossed record-breaking sales during the Big Billion Days by outrunning its biggest rival Amazon for two continuous months. As per a report from Mint, Flipkart had gross sales of more than Rs.2, 600 Crore until January 2017 compared to Amazon’s gross sales crossing over Rs.2, 300 Crore. Previously, Flipkart had 15.5 million units sold defeating Amazon’s sales of 15 Million units during the Great Indian Festival.

The major turndown for Flipkart in 2016 was in terms of the capital valuation. Its capital valuation declined considerably because of stiff competition from its rivals like Amazon and Paytm. Flipkart had to appoint new CEO in order to take preventive measures to increase its valuation in the online market.

The company would be shelling out heavy investments to see to it that it reaches to a considerable valuation mark. Flipkart is reported to be in talks with other Companies such as PayPal Holdings, Microsoft, Google and a few others to receive funding. As per the report by Mint, the investors are set to fund a massive $1.5 billion to increase the company valuation to $12 billion.

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