Fidelity marks down Meesho’s valuation to $3.5 billion

Adding to a growing, not-so-favourable list of high-profile Indian unicorns getting their valuations slashed, Meesho is now seeing global investment firm Fidelity yet again mark down its valuation. Fidelity has reassessed the social commerce platform’s valuation to $3.5 billion. This comes as a continuation of Fidelity’s periodic reassessments of its investment portfolio.

Fidelity’s recent monthly disclosure indicated a fair value of Meesho at $3.2 billion, a decline from its original valuation of $5 billion. The firm had previously cut Meesho’s valuation to $4.1 billion from $5 billion in October 2023, citing factors such as changes in the public market counterparts and a secondary sale transaction.

This latest markdown represents a 33.6% decline in valuation from the time Fidelity invested around $42 million in Meesho’s Series F round in October 2021. While Fidelity’s calculations suggest a fair value of $27.8 million for its stake in Meesho at the end of December 2023, down from the $41.9 million invested in the second half of 2022, Meesho disputes this, asserting that the correct valuation stands at $3.5 billion. The discrepancy is attributed to an increase in outstanding shares, notably due to the expansion of the Employee Stock Ownership Plan (ESOP) pool.

Meesho, counted among the fastest-growing e-commerce startups in India, has situated itself in Tier 2+ cities, contributing to its impressive 32% year-on-year growth in the user base in December 2023. Despite the valuation adjustments, the social commerce platform boasts a current gross merchandise value (GMV) run rate of over $5 billion.

Fidelity’s valuation reassessments extend beyond Meesho, with slight markups in the value of its holdings in Reddit, Gupshup, and X. However, these startups remain below their original investment dollars.

Previous post Best Truly Wireless Headphones For iPhone In 2024
Next post How will AI impact the gambling industry?