Neither Fidelity nor Flipkart was available for comment.
Drastic times comes along with drastic decision and when it comes to Indian e-commerce startup Flipkart, its monopoly in the sector is being questioned by multinationals like Amazon, putting it into severe fund crunch.
In the latest setback for the Bangalore-based e-commerce company, its US -based investor, Fidelity Investments, has marked down the value of its holding in Flipkart Online Services Pvt drastically by 36%.
In the latest filing of Fidelity Investments in US Security and Exchange Commission, the investor has recorded that two mutual funds of the company were priced $52.13/share as of November 30, down from $81.55/share in end of August.
The Mint reported that current evaluation of Flipkart has come down to $5.58 billion. Neither Fidelity nor Flipkart was available for comment.
The devalue comes at a time when Flipkart has been complaining of e-commerce giants like Amazon using tactics that Indian e-commerce company succeeded. In one instance Kalyan Krishnamurthy, Flipkart’s head of advertising and commerce platform said Amazon copies everything from them.
“We came up with the construct of BBDs, they copied that. When we have a bank offer, they have it as well,” he added. “They copy everything, or they wait for someone from somewhere to tell them what to do. Just by pouring money into the market you cannot get anywhere,” said Flipkart co-founder Binny Bansal.
This is not the first time that Flipkart is being hit by marking down. The company has faced similar setbacks since the competition intensified in the e-commerce industry in India, mainly after Amazon setting foot in the subcontinent.
Flipkart has undergone a massive shake up in the top-level management in recent months, something widely interpreted as renewed focus on profit margin over volume growth.
Drastic times comes along with drastic decision and when it comes to Indian e-commerce startup Flipkart, its monopoly in the sector is being questioned by multinationals like Amazon, putting it into severe fund crunch.
In the latest setback for the Bangalore-based e-commerce company, its US -based investor, Fidelity Investments, has marked down the value of its holding in Flipkart Online Services Pvt drastically by 36%.
In the latest filing of Fidelity Investments in US Security and Exchange Commission, the investor has recorded that two mutual funds of the company were priced $52.13/share as of November 30, down from $81.55/share in end of August.
The Mint reported that current evaluation of Flipkart has come down to $5.58 billion. Neither Fidelity nor Flipkart was available for comment.
The devalue comes at a time when Flipkart has been complaining of e-commerce giants like Amazon using tactics that Indian e-commerce company succeeded. In one instance Kalyan Krishnamurthy, Flipkart’s head of advertising and commerce platform said Amazon copies everything from them.
“We came up with the construct of BBDs, they copied that. When we have a bank offer, they have it as well,” he added. “They copy everything, or they wait for someone from somewhere to tell them what to do. Just by pouring money into the market you cannot get anywhere,” said Flipkart co-founder Binny Bansal.
This is not the first time that Flipkart is being hit by marking down. The company has faced similar setbacks since the competition intensified in the e-commerce industry in India, mainly after Amazon setting foot in the subcontinent.
Flipkart has undergone a massive shake up in the top-level management in recent months, something widely interpreted as renewed focus on profit margin over volume growth.