BLOOMBERG (‘17): “Markdowns A Wake-Up Call For E-Commerce Companies”
In its ever biggest markdown of the Indian e-commerce company, a mutual fund managed by Morgan Stanley slashed Flipkart’s valuation by 38 percent on Tuesday. With this, the valuation of the country’s most valuable internet company stood at at $5.54 billion – the lowest since September 2014.
But Flipkart is not alone. Japanese investment giant Softbank earlier this month, announced a 58.1 billion yen ($513 million) investment loss in two of its biggest investments in India – cab-hailing firm Ola (ANI Technologies Pvt. Ltd) and e-commerce marketplace Snapdeal (Jasper Infotech Pvt. Ltd).
This comes at a time when these companies are looking to raise additional funding.