Flipkart's markdown heralds 'market detox'

Bengaluru

CASH-HUNGRY Indian startups like Flipkart are discovering that the fundraising party is winding down.

The domestic e-commerce leader became one of the most prominent Asian startups to have its valuation slashed by a high-profile investor. Sending ripples through the industry, a Morgan Stanley fund marked down its value by more than a quarter to US$11 billion - less than a year after financing clinched a US$15 billion valuation.

That's an unexpected setback for Flipkart Pvt: it's currently seeking to raise about US$1 billion, according to a person familiar with the matter who didn't want to be identified because the deal is…