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Case Code: BSTR522
Case Length: 12 Pages 
Period: 2007-2017   
Pub Date: 2017
Teaching Note: Not Available
Price:Rs.300
Organization :Flipkart Online Services Private Limited  
Industry :E-commerce 
Countries : India
Themes: Business Strategy
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Flipkart in Trouble?

 
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INTRODUCTION

 
Leading Indian e-tailer Flipkart Online Services Private Limited (Flipkart) hit rough weather after being devalued twice in 2016. Mutual investment company Morgan Stanley , in its filings with market regulator US Securities and Exchange Commission (SEC), had reduced the value of its holding in Flipkart by 15.5% in February 2016, pushing Flipkart’s overall valuation to below US$10 billion. According to Morgan Stanley, Flipkart’s enterprise value stood at US$9.39 billion, against around US$15 billion in 2015 . In February 2016, another investor, T Rowe Price Group Inc. , also reduced the value of its holding in Flipkart by 15%. According to experts, the devaluation would impair Flipkart’s capacity to raise funds in the future. Apart from this, Flipkart was in hot water due to tough competition in the e-commerce space, frequent changes in its top management, government regulations on e-tailers, and diminishing profits. Commenting that Flipkart’s strategies were flawed, Media group Network18’ s founding CEO Haresh Chawla said, “Flipkart is in the middle of a storm of its own making. The ignominy of squandering its first mover advantage to Amazon will only heighten the crisis brewing inside.” ..

 

 
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