Morgan Stanley Institutional Fund Trust, one of the mutual fund investors in Flipkart, has marked down its estimate of the company’s valuation for the third consecutive time in the past six months, according to media reports. Morgan Stanley values its Flipkart holdings at $84.3 a share as of 30 June, nearly 4% lower from the preceding quarter. Its markdown implies that it estimates Flipkart is now valued at around $9 billion which has dropped from $15.2 billion mid last year.
However, previously the homegrown e-commerce giant’s investor Valic Co has reported to mark up the e-tailer's shares by 10%. The mutual fund, which had earlier invested in the company in 2013, reported to have said in its quarterly filings that it valued Flipkart's shares at $108.04 a piece at the end of May compared to $98.19 in the previous quarter.
This happens to be the second mark-up for Flipkart this quarter — following another mutual fund investor Fidelity Rutland Square Trust II, raising its valuation by 2.7% to $84.29 per share in May, from $82 per share in February, reports mentioned.
Despite the mark downs, Flipkart has been actively ramping up operations and introducing innovations such as enhancing product selection, products like loyalty service like Flipkart Assured, technology, and supply chain capabilities to better shopping experience for customers, in the last few months. Flipkart emerged as the 'E-commerce company of the year' in a nationwide consumer study conducted by the BusinessWorld Group in association with Nielsen.
Then recently it has identified content to drive users and traffic on its platform. To take on Amazon Prime, Flipkart launched its own content programme called Content-2-Commerce. To take it ahead it has partnered with several online content creators including The Viral Fever (TVF), Scoop Whoop, tabloid magazine FilmFare, multi-channel network on Google, Ping, among others for video series and other branded content initiatives.
Fliptech, a gadget guide was launched in partnership with technology portal Digit.in, followed by Flipkart Hobby Hub, to help users discover new hobbies and the products to pursue them on its platform. Fliptech, a first-of-its-kind initiative by Flipkart, helps Flipkart users make informed decisions while purchasing gadgets from the website. Digit will publish an online gadget guide for Flipkart users, with actual test-based product reviews, gadget picks and more. This strategy appears to have worked for the homegrown e-commerce marketplace with Fliptech reported to witness over one million visits within the first week of its launch.
Talking to the customers through their passions the Hobby Hub helps users get inspired and get started with their hobbies with the right products from Flipkart from cameras to internet of things to the latest tech hacks'. The customer friendly Hobby Hub allows customers to deep dive into a hobby of their choice.