US-based asset management firm Fidelity Investments has cut the fair value of its investment in ecommerce firm Meesho to $3.5 billion, down more than 33% from its original investment.
This comes months after the investor slashed Meesho’s valuation to $4.1 billion from $5 billion, as per filings available with the US Securities Exchange Commission (SEC).
“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,” a Meesho spokesperson said in response to YourStory’s query.
Last week, a report by AllianceBernstein showed that Meesho has emerged among the fastest-growing companies in the country’s ecommerce space.
Later, YourStory reported that Meesho’s Chief Product Officer Kirti Varun Avasarala was set to leave the company.
Last year, Meesho said it is nearing zero cash burn and is on track to achieve EBITDA breakeven this year. The company is already contribution margin positive, which excludes marketing and other indirect spends.
Edited by Kanishk Singh
