It appears that the time is finally up! Flipkart is the most celebrated startup of India. The first unicorn of the Indian startup ecosystem has been devalued as per the regulatory filing by Morgan Stanley with the SEC. Morgan Stanley valued it’s stake in Flipkart at $80.62 million in June 2015 while in the recent filing in December 2015, it’s stake is valued at $58.93 million.
Flipkart’s valuation has fallen from $15.2 Billion to $11.1 Billion. A fall that comes out to be 27% in terms of percentage.
Over the last few years, as many as 8 Indian startups have achieved astonishing valuations of over a billion dollars. These unicorns may have stellar ideas but many people have always maintained that these valuations were due to optimism surrounding the nascent startup ecosystem in India. Now that it looks like the bubble surrounding Indian startups is bursting, the evaluations have started coming down. It has been a tough few months for many celebrated startups especially in food tech startups with so many layoffs.
Now, it appears is the turn of e-commerce websites. First, snapdeal was criticised by its own employees for setting unrealistic targets in an attempt to fire them. Now, Flipkart has been devalued. With the global economy in turmoil, the things could get really ugly really fast. In terms of Flipkart, the company also closed down its Flipkart Nearby grocery delivery service. The delivery service which started in October last year was shut down citing lack of demand.
In terms of Flipkart, the company also closed down its Flipkart Nearby grocery delivery service. The delivery service which started in October last year was shut down citing lack of demand. In a matter of 5 months, the service has been closed down which in a way shows that all isn’t good with India’s first unicorn. There are many who believe that Flipkart has gotten too big to fall to the ground and to a large extent it is true. Seeing valuations fall wouldn’t please any shareholder who has pumped in money for so long.
Flipkart in recent months has seen a few changes in the hierarchy and it could well be one of the reasons for the valuations to fall. This just shows how stability at the top level is one of the most important things for any company.