Fidelity marks down valuation of Meesho and Pine Labs

Financial services firm Fidelity has marked down the valuation of e-commerce company Meesho and fintech unicorn Pine Labs. Interestingly, the US-based asset management company marked up the valuation of both companies in July 2023 after slashing their fair valuation in April last year.

As per regulatory filings with the US’ Securities and Exchange Commission (SEC), Fidelity cut Meesho’s valuation to $4.1 billion from $5 billion earlier as of October 31, 2023. Similarly, it slashed the valuation of Pine Labs to $3 billion from $4.7 billion.

The development was first reported by ET.

Recently, Invesco also revised the valuation of Pine Labs to $3.9 billion from $4.1 billion earlier.

Fidelity invested around $42 million in Meesho’s Series F round in October 2021 which valued the company at around $4.9 billion. In Pine Labs, Fidelity’s latest round was in July 2021 when the Singapore-registered company raised $600 million.

In FY23, Pine Labs revenue’s spiked 56% to Rs 1,588 crore whereas Meesho saw 77% year-on-year jump in its scale to Rs 5,735 crore. While Pine Labs was close to profitability with Rs 227 crore loss, Meesho cut its losses by 48% to Rs 1,675 crore in FY23. The e-commerce company also claimed to be profitable with positive cash flow in India since July 2023 and has continued to remain so.

When it comes to valuation markdowns, edtech company Byju’s is on top as it saw 95% cut in its fair value by its investor Blackrock. Once valued at $22 billion, the Byju Raveendran-led firm was recently valued at $ 1 billion by the US-based multinational investment company.