Flip­kart sees value cut 27 per­cent amid startup shake­out

The Pak Banker - - COMPANIES/BOSS -

In­dian e-com­merce com­pany Flip­kart Pvt., one of Asia's most valu­able star­tups, had its val­u­a­tion slashed by a Mor­gan Stan­ley fund amid con­cerns of a shake­out among ven­ture­backed com­pa­nies.

Mor­gan Stan­ley In­sti­tu­tional Fund Trust val­ued its 566,827 shares in Flip­kart at $58.9 mil­lion as of Dec. 31, down from $80.6 mil­lion in June, ac­cord­ing to a fil­ing with the U.S. Se­cu­ri­ties & Ex­change Com­mis­sion. Mor­gan Stan­ley didn't ex­plain the rea­sons for the mark­down in the fil­ing.

The seven year-old Flip­kart was started by two for­mer Ama­zon.com Inc. en­gi­neers in their apart­ment and has grown to be­come In­dia's big­gest on­line seller of ev­ery­thing from ap­parel to smart­phones. In its most re­cent fund­ing round, the e-re­tailer was val­ued at more than $15 bil­lion, ac­cord­ing to Bank of Amer­ica Mer­rill Lynch. Among its big­gest in­vestors are New York's Tiger Global Man­age­ment LLC and South Africa's Naspers Ltd.

Flip­kart, Ama­zon and Soft­Bank Group Corp.-backed Snapdeal.com are locked in a three-way bat­tle for dom­i­nance in a mar­ket pro­jected to be worth $220 bil­lion by 2025. The three com­pa­nies have re­sorted to spend­ing heav­ily on ad­ver­tis­ing and deep dis­count­ing in their fight to win cus­tomers.

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