Fidelity Cuts Flipkart Valuation By 36% To $5.57 Billion
Fidelity Mutual Fund has pared the valuation of India’s largest online retailer Flipkart by 36 percent to $5.57 billion in November-end, down from $8.71 billion in August. This is the third mark-down in Flipkart’s valuation by Fidelity in less than a year.
The e-commerce major had last raised funds in July 2015 at a valuation of $15.2 billion, but has since been marked down multiple times by its investors.
In its report for six months ended November 30, 2016, Fidelity Rutland Square Trust II said the holding value of Flipkart’s D Series shares has fallen to a little over $2.7 million, valuing each share at $52.13. The fund held 52,096 shares in convertible preferred stock as on November 30, 2016, the fund said in a filing to the U.S. Securities and Exchange Commission (SEC) on Tuesday evening.
In its review for the quarter ended August 31, 2016, the fund had valued Flipkart shares at $81.55 per preferred convertible stock. It had acquired these shares on April 4, 2013 for nearly $1.2 million.
Fidelity’s latest mark-down has brought Flipkart’s valuation close to that ascribed by Morgan Stanley.
In November, a Morgan Stanley-managed mutual fund had reduced the value of its holding in Flipkart by 38.2 percent to $52.13 a share, down from $84.29 apiece in the June quarter, according to its filings with the SEC. The mutual fund -- Morgan Stanley Select Dimensions Investment Series -- held 1,969 shares in Flipkart that are collectively valued at $102,644.
A host of other investors, including American asset management firm T Rowe Price, Vanguard Group and Valic Co, have also been cutting the valuation of their holdings in Flipkart. The online retailer’s other investors also include Tiger Global Management, Naspers, Accel Partners, Iconiq Capital and DST Global.