US-based asset manager Fidelity has marked down its holding in e-commerce startup Meesho by 33.6%, resulting in a current valuation of $3.25 billion, its monthly disclosure released on Monday said.
Meesho contends that adjusted for outstanding shares, its valuation stands at $3.5 billion.
As of December-end Fidelity valued its stake in Meesho at $27.8 million, a decrease from the $41.9 million invested in 2022 through a specific mutual fund unit.
The valuation adjustment follows a markdown in October, when Fidelity reassessed Meesho’s worth at $4.1 billion, down from $4.9 billion during its last funding round.
Fidelity’s recent move may have been influenced by a secondary sale transaction late last year, where early backer Venture Highway sold equity in Meesho to WestBridge Capital, valuing the company at $3.5 billion.
“Funds attribute value to their portfolio investments, considering various factors such as the valuation of comparable companies. Based on Fidelity filings, the number of shares held and the current number of total outstanding fully diluted shares, the valuation is assessed at $3.5 billion. The increase in the number of outstanding shares, notably due to the ESOP pool expansion, could have contributed to this valuation shift,” Meesho said in a statement.
Fidelity has also marked up the value of its holdings in Reddit, Gupshup, and X, as reported in the monthly disclosure. However, all these startups remain below their original investment dollars.
Meesho, backed by investors such as Meta, Peak XV, Prosus Ventures, B Capital and SoftBank, is one of the fastest-growing e-commerce ventures in India. According to AllianceBernstein, its current gross merchandise value (GMV) run rate exceeds $5 billion.
Meesho is also planning to venture into new areas, including the development of a financial services platform and scaling up its grocery delivery business. Over 50% of Meesho’s sales originate from Tier 2 and below cities.