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Fidelity cuts A $3.5B meta-backed Meesho value

Fidelity has reduced its Meesho position by 33.6% since its investment, valuing the Indian social commerce firm at $3.25 billion. After adjusting for outstanding shares, Meesho valued itself at $3.5 billion.

In December, U.S. asset management evaluated its Meesho position at $27.8 million, down from $41.9 million in the second half of 2022 through a mutual fund subsidiary. Fidelity disclosed the reduction in its monthly statement on Monday afternoon.

At the end of October, Fidelity valued Meesho at $4.1 billion. Previous fundraising valued the firm at $4.9 billion. Eltrys claimed that Venture Highway sold some of its Meesho ownership to WestBridge Capital late last year, resulting in the value change. That transaction valued Meesho at $3.5 billion, which may have influenced Fidelity’s valuation.

We value our portfolio assets based on variables including comparable company valuations, a Meesho spokeswoman told Eltrys. Based on Fidelity filings, shares held, and fully diluted shares outstanding, the valuation is $3.5 billion. The ESOP pool expansion, which increased the number of outstanding shares, may have caused the valuation change.

The monthly report shows Fidelity has marginally increased the value of its Reddit, Gupshup, and X holdings. All of these startups are well below their funding.

With Meta, Peak XV, Prosus Ventures, B Capital, and SoftBank as investors, Meesho is one of the fastest-growing e-commerce firms in the country. Alliance Bernstein revealed this month that its GMV run rate exceeds $5 billion. Financial services and grocery deliveries are also among its expansion plans, the Indian newspaper Economic Times said Tuesday.

Over 50% of Meesho’s sales originate from Tier 2 and below cities, targeting a demographic Flipkart and Amazon have ignored. Alliance Bernstein said Meesho’s concentration on small towns and mass-market, value-conscious customers is paying off.

Eltrys Team
Author: Eltrys Team

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