Fidelity Cuts Valuations of Meesho to $4.1 Billion and Pine Labs to $3 Billion

25 Jan 2024 , 02:39 PM

Fidelity, a US-based financial services company, has reduced the valuations of low-cost e-commerce platform Meesho and fintech giant Pine Labs, according to regulatory filings with the Securities and Exchange Commission (SEC) as of October 31, 2023.

Meesho’s valuation was lowered from $5 billion to $4.1 billion, while Pine Labs’ valuation decreased from $4.7 billion on August 31, 2023, to $3 billion on October 31, 2023, as reported by Fidelity.

Meesho’s last funding round in September 2021 raised $570 million at a valuation of $4.9 billion. However, its valuation had increased to slightly over $5 billion in August the following year after a previous cut in April.

Meesho explained that valuation changes are a common practice among investors, and per-share price changes should be considered in conjunction with the number of shares.

The recent adjustment in Meesho’s valuation aligns it closer to its secondary sales transaction valuation, where Venture Highway diluted its stake and sold shares to WestBridge at around $3-3.5 billion in September.

For Pine Labs, the valuation reduction from $4.7 billion to $3 billion was more significant. Invesco, another US-based asset management company, had also recently revised Pine Labs’ valuation, stating it was $4.4 billion, down from its previous investment valuation of $5 billion.

Adjustments to fair values by asset management companies are typically based on their internal assessments of the macro and microenvironment. These changes do not necessarily reflect a permanent markup or markdown in the startup’s overall valuation.

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