Fidelity Investments Reduces Fair Value of Indian Social Commerce Startup Meesho by 10%

• ByStartupStory     |    May 30, 2023

Fidelity Investments, an asset management company (AMC) in the US, has recently devalued the fair value of Meesho, a social commerce startup, by 10 percent. This adjustment reflects the trend among AMCs to reduce the fair value of private technology companies due to the current challenging macroeconomic conditions.

Fidelity Investments, a prominent US-based asset management company (AMC), has reduced the fair value of Meesho Inc, the Bengaluru-based social commerce unicorn, across various funds it holds stakes in. Recent filings of funds like Variable Insurance Products Fund III and IV, as well as Fidelity Central Investments Portfolio LLC, indicate a significant 9.7% decrease in Meesho’s fair value. Consequently, this adjustment results in a revised valuation of the company at $4.4 billion.

“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 percent in the applicable period could have influenced the attribution of value,” said a source aware of the development.

Meesho, the social commerce startup based in India, joins the list of Indian unicorns facing a decline in their fair values. Notable startups like Ola, Swiggy, Eruditus, and Byju’s have also witnessed markdowns in their fair values by US-based asset management companies (AMCs). However, the markdowns for Eruditus and Meesho are relatively smaller compared to Ola, Byju’s, and Swiggy, which have experienced reductions ranging from 30 percent to 50 percent.

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