Flipkart now valued at $5.37 billion by Morgan Stanley

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US firm Morgan Stanley revalued India’s largest e-commerce website to $5.37 billion, a 3% cut from its previous valuation of $5.5 billion. Shares of Flipkart were valued at $50.51 per share, down from $52.13 in September 2016. The valuation was for the quarter ending December 2016.

Flipkart’s valuation dropped despite outperforming rival Amazon in terms of sales.

This is Flipkart’s fifth consecutive devaluation since June 2015. The company was valued at $15.2 billion in June 2015, with each share costing $142.24.

Increased competition and rising costs have eaten into company revenues, with it recording a loss of Rs.2,036 crore during FY 2016. The loss for FY2015 stood at Rs.1,096 crores.

It is not just Morgan Stanley which is devaluing Flipkart, Fidelity also revalued the company at $5.57 billion in November 2016. While the company claims to have performed better than rival Amazon, it has failed to raise fresh funding since 2015. Flipkart registered sales worth Rs.2,600 crore during December-January, Rs.300 crore more than Amazon.

Flipkart valuation from June 2015-December 2016 (according to Morgan Stanley)

Share value ($) Valuation ($)
June 2015 142.24 15.20 billion
September 2015 135.81 14.45 billion
December 2015 103.97 11.11 billion
March 2016 87.86 9.38 billion
June 2016 84.29 9.00 billion
September 2016 53.13 5.58 billion
December 2016 50.5 5.39 billion

Flipkart appointed Kalyan Krishnamurthy as the CEO in January this year, aiming to turnaround the fortunes of India’s largest e-commerce website. Krishnamurthy was the former executive of Tiger Global, one of the major investors in Flipkart.

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