Fidelity-managed mutual fund has further slashed Flipkart’s shares by 36.1%, pegging the current valuation at $5.56 Bn, reported ET. Fidelity has marked the value of their Flipkart shares at $52.13 per share as of November 2016, down from $81.55 per share as of August 2016, the fund has disclosed.
It does not stop here, prior this devaluation, Morgan Stanley had also marked the value of their Flipkart shares at $52.13 per share in the September 2016 quarter. Also, earlier this month, US-based mutual fund investor T. Rowe Price too reduced Flipkart’s valuation by another 4%, to about $9.9 Bn.
In earlier conversations with ET, Flipkart co-founders said that “markdowns are a theoretical exercise and valuation will be determined when it raises a new round of funding.“
This move follows with a major reshuffle in Flipkart’s organisation structure. Co-founder Binny Bansal stepped down from the position of company CEO while Kalyan Krishnamurthy, a former executive at Flipkart’s largest investor Tiger Global, became the new CEO of Flipkart.
At the same time several other structural changes were also announced, chief among them being the formation of a new Flipkart Group Organisation, which will now be headed by Binny.
Other recent exits include supply chain unit Ekart head Saikiran Krishnamurthy, product head Surojit Chatterjee, and chief marketing officer Samardeep Subandh.