US-based Fidelity cuts SoftBank-backed Meesho’s valuation to $3.5 bn

US-based Fidelity has again cut the valuation of Meesho, valuing the e-commerce start-up at $3.5 billion. This is a decline of about 29 per cent from the SoftBank-backed company’s peak valuation of $4.9 billion.

“Funds attribute value to their portfolio investments, considering various factors such as the valuation of comparable companies,” said a Meesho spokesperson. “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.”