Bengaluru, May 30: Fidelity Investments has slashed the valuation of e-commerce unicorn Meesho by 9.7 per cent to $4.4 billion in the quarter ending March 2023 from the earlier valuation of $4.9 billion.
Commenting on this development, a Meesho Spokesperson said, “Funds attribute value to their portfolio investments, taking into account multiple factors. In this case, factors like an increase in the ESOP (employee stock option plan) pool of nearly 4 per cent in the applicable period have influenced the attribution of value.” Moneycontrol was the first to report this development.
In addition to Meesho, many other unicorns (such as Byju’s, Swiggy, Pharmeasy etc) have recently seen their valuations getting cut in investor books. For example, Janus Henderson has also slashed PharmEasy’s valuation by 50 per cent to $2.8 billion from $5.6 billion. Further, US-based Neuberger Berman reduced the valuation of API Holdings (Pharmeasy) by 22 per cent to $4.39 billion. Neuberger also slashed Pine Labs’ valuation to $3.14 billion from its last valuation of $5 billion.
Ola’s American investor Vanguard Group slashed the company’s valuation by 35 per cent to $4.8 billion, compared to its peak valuation of $7.3 billion. Prosus, too, pegged BJYU’s valuation at $6 billion in November 2022. Byju’s raised its last funding round at a valuation of $22 billion. In late 2022, Oyo’s valuation was also slashed to $2.7 billion from $10 billion by Japanese conglomerate, SoftBank.