BENGALURU: US-based asset management company Fidelity Investments has marked up the valuation of Meesho and Pine Labs. It has raised Meesho’s valuation by nearly 14%. Previously, it had slashed the fair value of Meesho by 9.% in April and reduced its valuation to $4.4 billion.
According to its latest filings with the Securities and Exchange Commission dated July 31, Fidelity said its stake in the e-commerce company was worth about $43.24 million compared to $37.8 million in April. It marked up the fair value of its stake in Pine Labs at about $34.7 million, up 4.6%.
Baron Capital too marked up the valuation of Pine Labs. Recently, Meesho announced that it will onboard 10 million small businesses by 2027 and help them succeed online. This is a ten-fold expansion of Meesho’s current seller base of 1.3 million.
According to a report by RedSeer, the country boasts an estimated 85 million MSMEs, yet only 1.5 million currently operate within the online sphere. Meesho recently became the first horizontal e-commerce company in India to achieve profitability.
The e-commerce company achieved profitability at a consolidated PAT level, incorporating all costs, including ESOP, across all divisions and categories. Operating on a 0% commission model, backed by Marquee investors, including SoftBank, Prosus, Meta, B Capital and Elevation, the company has raised about $1.1 billion in funding to date. Jefferies in a note in April had said, that Meesho, which is the third largest e-commerce retailer with a CY22 GMV of about $4.5 billion and a 7% market share, is growing much faster than the overall e-commerce market.