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Flipkart sticks to 'strong traction' line after massive devaluation

According to Morgan Stanley, Flipkart is now worth $6 billion from $15 billion, reports Tech in Asia

Nivedita Bhattacharjee 

Flipkart

is going with its message of strong business momentum and “innovating for the customer” in the face of a massive markdown by Morgan Stanley.
 
The ecommerce company, once thought to be worth $15 billion, is now only worth $6 billion, according to a fund. The company, however, is putting up a brave front, saying market valuations aren’t all that important.
 
Earlier this year, CEO started talking about customer-centricity. In May, he followed and Snapdeal in cheering for customer service over GMVs – a metric that was considered the holy grail of all ecommerce growth till then.

 
The jury, however, is out on whether is still king. Over the past few months, the company has seen a slate of top-level executives, including finance chief officer Sanjay Baweja, quit. It’s also been involved in awkward situations regarding hiring, and fund-raising.
 
In a fiercely contested market, the company has been trying to defend its turf against India. During the first few days of India’s biggest shopping season, beat in number of units sold.
Also, is hovering over both of them.
 
Flipkart sticks to 'strong traction' line after massive devaluation
Under these circumstances, a markdown is not necessarily always a bad thing for startups that have been commanding extremely steep numbers. The Indian startup ecosystem has been buzzing with whispers of how Flipkart, Ola, and some others are finding it hard to get investors to give them money at current valuations.
 
In the case of publicly traded companies, it is not uncommon to see long-term investors buying stocks on apparent bad news. Because startups don’t have these external checks and balances, the market takes cues from current investors.

This is an excerpt from Tech in Asia. You can read the full article here

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Flipkart sticks to 'strong traction' line after massive devaluation

According to Morgan Stanley, Flipkart is now worth $6 billion from $15 billion, reports Tech in Asia

According to Morgan Stanley, Flipkart is now worth $6 billion from $15 billion, reports Tech in Asia
is going with its message of strong business momentum and “innovating for the customer” in the face of a massive markdown by Morgan Stanley.
 
The ecommerce company, once thought to be worth $15 billion, is now only worth $6 billion, according to a fund. The company, however, is putting up a brave front, saying market valuations aren’t all that important.
 
Earlier this year, CEO started talking about customer-centricity. In May, he followed and Snapdeal in cheering for customer service over GMVs – a metric that was considered the holy grail of all ecommerce growth till then.
 
The jury, however, is out on whether is still king. Over the past few months, the company has seen a slate of top-level executives, including finance chief officer Sanjay Baweja, quit. It’s also been involved in awkward situations regarding hiring, and fund-raising.
 
In a fiercely contested market, the company has been trying to defend its turf against India. During the first few days of India’s biggest shopping season, beat in number of units sold.
Also, is hovering over both of them.
 
Flipkart sticks to 'strong traction' line after massive devaluation
Under these circumstances, a markdown is not necessarily always a bad thing for startups that have been commanding extremely steep numbers. The Indian startup ecosystem has been buzzing with whispers of how Flipkart, Ola, and some others are finding it hard to get investors to give them money at current valuations.
 
In the case of publicly traded companies, it is not uncommon to see long-term investors buying stocks on apparent bad news. Because startups don’t have these external checks and balances, the market takes cues from current investors.

This is an excerpt from Tech in Asia. You can read the full article here

image
Business Standard
177 22

Flipkart sticks to 'strong traction' line after massive devaluation

According to Morgan Stanley, Flipkart is now worth $6 billion from $15 billion, reports Tech in Asia

is going with its message of strong business momentum and “innovating for the customer” in the face of a massive markdown by Morgan Stanley.
 
The ecommerce company, once thought to be worth $15 billion, is now only worth $6 billion, according to a fund. The company, however, is putting up a brave front, saying market valuations aren’t all that important.
 
Earlier this year, CEO started talking about customer-centricity. In May, he followed and Snapdeal in cheering for customer service over GMVs – a metric that was considered the holy grail of all ecommerce growth till then.
 
The jury, however, is out on whether is still king. Over the past few months, the company has seen a slate of top-level executives, including finance chief officer Sanjay Baweja, quit. It’s also been involved in awkward situations regarding hiring, and fund-raising.
 
In a fiercely contested market, the company has been trying to defend its turf against India. During the first few days of India’s biggest shopping season, beat in number of units sold.
Also, is hovering over both of them.
 
Flipkart sticks to 'strong traction' line after massive devaluation
Under these circumstances, a markdown is not necessarily always a bad thing for startups that have been commanding extremely steep numbers. The Indian startup ecosystem has been buzzing with whispers of how Flipkart, Ola, and some others are finding it hard to get investors to give them money at current valuations.
 
In the case of publicly traded companies, it is not uncommon to see long-term investors buying stocks on apparent bad news. Because startups don’t have these external checks and balances, the market takes cues from current investors.

This is an excerpt from Tech in Asia. You can read the full article here

image
Business Standard
177 22

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