Fidelity Investments slashes Meesho’s valuation by 10% to $4.4 billion

US-based Fidelity Investments on Tuesday slashed the valuations in e-commerce unicorn Meesho by almost 10%, further reducing the valuation of the company to $4.4 billion.

According to the regulatory filings for the quarter ending March 2023, the investment firm, which owns around 33,000 shares of Meesho through the Fidelity Central Investment Portfolio Fund, has lowered the value of its investment by 9.6%, from $2.59 million to $2.34 million.

The decline in valuation is likely due to a number of factors, including the overall slowdown in the global economy, the rising cost of living, and the ongoing war in Ukraine. The decline in valuations is a sign that investors are becoming more cautious about investing in risky assets.

Fidelity had co-led Meesho's last funding in 2021, a $570 million Series F transaction, which valued the company at $4.9 billion. The valuation drop comes at a time when Meesho, like many unicorns, is attempting to not only demonstrate growth to sustain its valuations, but also a route to profitability. To reduce financial burn, three waves of employment cutbacks have occurred in the last year.

Meesho recently announced that it has let go of 251 employees in a fresh round of job cuts. Last year, Meesho had let go off about 150 employees.

Since last April, the Vidit Aatrey-led startup has issued pink slips to over 700 employees. The company stated that it was a painful decision, but one that was required as it seeks to go lean and achieve long-term profitability.

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