Pine Labs and Meesho Valuation lowered by Fidelity

US-based Fidelity has revised the valuations of Meesho, the low-cost e-commerce platform, and fintech giant Pine Labs, per regulatory filings with the Securities and Exchange Commission (SEC) dated October 31, 2023.

According to Fidelity, Meesho‘s valuation has been reduced from $5 billion to $4.1 billion. Similarly, Pine Labs is now valued at $3 billion, down from its valuation of $4.7 billion on August 31, 2023.


This valuation adjustment represents a significant change on paper for both startups. Meesho, which had previously raised $570 million at a valuation of $4.9 billion in September 2021, saw a valuation increase to slightly over $5 billion in August of the following year, following a prior value reduction in April.


Meesho responded to the valuation change, stating that such adjustments are shared among investors. A spokesperson for Meesho mentioned, “Funds attribute value to their portfolio investments, taking into account multiple factors.


We could not comment on the specifics; however, per-share price changes do not fully indicate valuation changes and should be looked at in conjunction with the number of shares.”


The latest valuation adjustment for Meesho brings it closer to its valuation during a secondary sales transaction where Venture Highway, an early backer, sold shares to WestBridge at a valuation of around $3-3.5 billion in September of the previous year.


On the other hand, Pine Labs experienced a steeper reduction in valuation, dropping to $3 billion from $4.7 billion. Pine Labs did not immediately respond to queries regarding the valuation change.


Invesco, another US-based asset management company (AMC), had also recently adjusted Pine Labs’ valuation. In 2021, Invesco invested in Pine Labs at a $3 billion valuation, indicating that the fintech company is currently valued at $4.4 billion. 


Although this reflected an increase in Invesco’s books, it marked a reduction for Pine Labs, as the company had previously raised funds at a $5 billion valuation.


It’s crucial to note that these adjustments to fair values are typically based on AMC’s internal assessment of the macro and microenvironment and may not necessarily indicate a permanent markup or markdown in the startup’s overall valuation.