Fidelity slashes Flipkart’s valuation to $5.56 billion

The valuation of the e-commerce giant Flipkart has been pegged at $5.56 billion as a Fidelity-managed mutual fund has further slashed value of its Flipkart shares by 36.1%.

Reportedly, the fund has disclosed that as of November 2016, Fidelity has marked the value of their Flipkart shares at $52.13 per share, down from $81.55 per share as of August 2016. This marked as the largest markdown by Fidelity till date and fourth markdown overall.

Also, another bigger mutual fund investors Morgan Stanley had also marked the value of their Flipkart shares at $52.13 per share in the September 2016 quarter. Flipkart has also faced a series of market downs from other mutual fund investors like T Rowe Price, and Valic over the past year.

Earlier, Flipkart co-founders have told ET that "markdowns are a theoretical exercise and valuation will be determined when it raises a new round of funding."

This move follows a top level management change at Flipkart that led to Kalyan Krishnamurthy, a former executive at Flipkart's largest investor Tiger Global, taking over from Binny Bansal as the new CEO. Co-founder Binny Bansal moved to a new position as group CEO, and the other co-founder Sachin Bansal continues as executive chairman.

The company has also witnessed a series of exits from the top managment. Ashish Agrawal and Hari Vasudev, both senior vice presidents of engineering, have stepped down. Other recent exits include supply chain unit Ekart head Saikiran Krishnamurthy, product head Surojit Chatterjee, and chief marketing officer Samardeep Subandh.