Financial services firm Fidelity has revised the valuation of e-commerce company Meesho and fintech unicorn Pine Labs, according to regulatory filings with the US Securities and Exchange Commission (SEC). Fidelity reduced Meesho’s valuation to $4.1 billion from $5 billion earlier as of October 31, 2023. Similarly, the valuation of Pine Labs was lowered to $3 billion from $4.7 billion.
This move comes after Fidelity had marked up the valuation of both companies in July 2023, following a previous reduction in their fair valuation in April last year. The development was first reported by ET.
Invesco also recently adjusted the valuation of Pine Labs to $3.9 billion from $4.1 billion. Fidelity had invested approximately $42 million in Meesho’s Series F round in October 2021, valuing the company at around $4.9 billion. For Pine Labs, Fidelity’s latest investment was in July 2021 when the company raised $600 million.
In FY23, Pine Labs recorded a 56% increase in revenue to Rs 1,588 crore, while Meesho saw a 77% year-on-year growth in its scale to Rs 5,735 crore. Pine Labs reported a loss of Rs 227 crore, nearing profitability, while Meesho reduced its losses by 48% to Rs 1,675 crore in FY23. Meesho claimed to be profitable with positive cash flow in India since July 2023.
In the realm of valuation adjustments, edtech company Byju’s experienced a significant reduction in its fair value by investor Blackrock, with a 95% cut from its previous valuation of $22 billion to $1 billion.
These valuation adjustments reflect the evolving dynamics of the startup ecosystem, influenced by factors such as financial performance, market conditions, and investor sentiments.