Flipkart’s valuation and its managerial team, both are far from being steady. The ecommerce biggie’s share value keeps getting upgraded and downgraded by its investors. And top managers keep exiting the company, despite of the many positive developments such as Rs.9,000 crore funding, acquisitions, and sale events.
Flipkart scores two mark-ups, two markdowns
Investors don’t think alike about Flipkart’s valuation because two financial services firms have downgraded its share value, while two others have increased it. As per the US Securities and Exchange Commission filing, the home-grown etailer’s shares were marked up by Morgan Stanley Institutional Fund & Vanguard Variable Insurance Fund and devalued by Fidelity Rutland Square Trust II & Valic.
Following are the recent changes in Flipkart’s value:
- Morgan Stanley increased the value of each share by 40%, from $50.51 in previous quarter to $70.68; putting the valuation at $7.5 billion
- Vanguard Variable increased the value of each share by 8.9% to $74.04; putting the valuation at$8 billion
- Valic decreased the value of each share from $95.83 in previous quarter to $94.27; putting the valuation at $8.5 billion
- Fidelity decreased the value of each share from $52.13 in previous quarter to $50.51; putting the valuation at $5.4 billion
In June 2016, Flipkart’s valuation stood at a whopping $15 billion. By April 2017, it slid down to $11.6 billion. Drop in valuation was due to the many markdowns by investors. In 2017 alone, the ecommerce leader has faced at least 5 devaluations.
Flipkart’s COO Nitin Seth resigns
Flipkart, which has already witnessed too many top-level exits, is hit by another resignation by a senior manager. Nitin Seth, Flipkart’s Chief Operating Office has left the company due to personal reasons. His responsibilities included looking after Ekart – Flipkart’s logistics arm, customer experience, HR and a range of corporate functions.
Those who reported to Seth would now have to report to Kalyan Krishnamurthy, Flipkart’s CEO. A source confirmed,
“Ekart and corporate functions, that Seth was in charge of, will now report to Kalyan.”
Experts believe that top managers are leaving as Krisnamurthy is tightening his grip over the online marketplace. But won’t Flipkart need more experienced hands to look after the company once it acquires rival Snapdeal?