Fidelity Investments Slash Meesho's Valuation By 10% The valuation markdown for Meesho has come at a time when the Bengaluru-based startup is looking at reducing its cash burn

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Twitter

US-based investor Fidelity Investments has cut the Bangalore-based e-commerce firm Meesho's valuation by about 10% to $4.4 billion, as per the recent regulatory filings with US SEC for the quarter ending March 2023.

According to the filing, in 2021, Fidelity had co-led Meesho's last fundraise — $570 million Series F funding round — valuing the company at $4.9 billion. The investment firm, which holds about 33,000 shares in Meesho through the Fidelity Central Investment Portfolio Fund, has since reduced the value of its stake by 9.6% from $2.59 million to $2.34 million.

"Funds attribute value to their portfolio investments, taking into account multiple factors. In this case, factors like an increase in the ESOP pool of nearly 4% in the applicable period have influenced the attribution of value," Meesho spokesperson reportedly said in a statement.

The decline in valuation is likely to be because of the overall slowdown in the global economy, the rising cost of living and so on. As per recent reports, Meesho has also laid off around 251 employees and in the last year, the company had let go off about 150 employees.

US-based multinational financial services firm had invested in Meesho in September 2021, which had resulted in Meesho's valuation doubling in less than six months. The valuation markdown for Meesho has come at a time when the Bengaluru-based startup is looking at reducing its cash burn and with this development Meesho has reportedly become eighth homegrown billion-dollar startup to suffer a valuation markdown.

According to an ET report, Vidit Aatrey, cofounder and chief executive of Meesho, had told that the company would continue to spend less on marketing, and it was ready to settle for a lower rate of growth

Earlier this week, edtech unicorn Eruditus and Byju's also saw their valuation cut. Swiggy, Pine Labs, PharmEasy and Ola are some others in the list.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business Solutions

Get a Lifetime of Powerful PDF Tools That Won't Give You a PDF Headache

Banish frustrating PDF issues forever and just breeze through all of the old problems with editing, formatting, converting, annotating and more.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

Rupeeflo, LegUp, and Rubyworks Secure Early-Stage Funding to Drive Growth

Here are the latest investment disclosures from Indian startups.

News and Trends

India's Private Capital Sector Sees Growth in Market Sentiment: Report

Hiring activity in India's private capital sector has remained strong—63% of respondents saw an increase in base compensation in 2024, while 50 % reported growth in bonus payments

News and Trends

Entrepreneur India 35 Under 35 2025: Aerial Tech Pioneer

"My childhood hobby of flying Remote Control planes turned into a mainstream business in one of the exponentially growing industries. It didn't allow me to think twice before launching this company," Paras Jain, Founder & CEO, Indo Wings

News and Trends

Entrepreneur India 35 Under 35 2025: The Empire Builder

"For 2nd generation entrepreneurs, it is a ready platform to showcase their professional abilities. I believe in filling in the gaps and expanding the 1st generation business to the next level," Mahesh N R, TSL Group