Brands
YSTV
Discover
Events
Newsletter
More

Follow Us

twitterfacebookinstagramyoutube
Yourstory

Brands

Resources

Stories

General

In-Depth

Announcement

Reports

News

Funding

Startup Sectors

Women in tech

Sportstech

Agritech

E-Commerce

Education

Lifestyle

Entertainment

Art & Culture

Travel & Leisure

Curtain Raiser

Wine and Food

Videos

ADVERTISEMENT
Advertise with us

Fidelity Investments cuts Meesho's valuation by 10%: Report

The latest filings show that the US-based AMC slashed the fair value of Meesho by 9.7%. With this, Meesho's valuation is now pegged at $4.4 billion.

Fidelity Investments cuts Meesho's valuation by 10%: Report

Tuesday May 30, 2023 , 2 min Read

Fidelity Investments has cut down 10% of the fair value of social commerce platform Meesho in its books, making it the latest US-based asset management company (AMC) to slash the fair value of private technology companies amid a challenging macroeconomic environment.

With this, Meesho's valuation is now pegged at $4.4 billion, a report by Moneycontrol said. YourStory could not independently verify this news.

Fidelity Investments holds stakes in Meesho Inc, the holding company of the Bengaluru-based social commerce unicorn, through multiple funds. The latest filings of these funds such as Variable Insurance Products Fund III and IV and Fidelity Central Investments Portfolio LLC show that the US-based AMC slashed the fair value of Meesho by 9.7%.

“Funds attribute value to their portfolio investments, taking into account multiple factors. In this case, factors like an increase in the ESOP (employee stock option plan) pool of nearly 4% in the applicable period could have influenced the attribution of value,” said a source aware of the development to Moneycontrol.

meesho

(L-R): Sanjeev Barnwal and Vidit Aatrey, Co-founders, Meesho

Also Read
Meesho lays off 251 people in townhall meeting

The social commerce startup is the latest Indian unicorn to see its valuation decline. On Monday, US-based Private Shares Fund slashed the valuation of its stake in edtech unicorn Eruditus by 9% to $4.66 million, according to filings with the US Securities and Exchange Commission.

Other prominent startups, including Ola, Swiggy, and BYJU'S, have also seen their valuations reduced by US-based AMCs.

In April, Meesho had reported nearing zero cash burn and was on track to achieve EBITDA breakeven this year. The company is contribution margin positive, which excludes marketing and other indirect spending.


Edited by Suman Singh