In Brief
Posted: 23:47 PST · December 30, 2024
Image Credits: Getty Images
Manish Singh
Fidelity Cuts Value of Its Stake in Gupshup, Implies New Valuation of $486M
Asset management firm Fidelity has slashed the estimated worth of its stake in business messaging platform Gupshup by another 7.7% last month, lowering the value of its holding in the SaaS startup by a total of more than 65% since its investment in mid-2021.
Gupshup’s Valuation Plummets
One of the funds operated by the U.S. asset manager valued its holding in Gupshup at $5.62 million at the end of November, down from $6.09 million in October, according to a monthly disclosure. This significant decline is a stark contrast to Fidelity’s original investment of $16.2 million from its Blue Chip Growth Fund in Gupshup in mid-2021.
Fidelity’s Original Investment
The funding round that valued the San Francisco-headquartered startup at $1.4 billion was one of the most notable investments made by Fidelity in 2021. The asset management firm had invested a significant amount in various startups and companies, but its stake in Gupshup has been particularly scrutinized.
Gupshup’s Rise to Prominence
Gupshup, which started its journey in India 17 years ago, raised $340 million in 2021 from a clutch of investors, including Tiger Global, Think Investments, and Malabar Investments. The startup has made significant strides in the business messaging platform space, and its valuation was expected to continue rising.
Fidelity’s New Valuation
According to Fidelity’s calculation, the asset manager now values Gupshup at $486 million. This new valuation is a 65% drop from the original investment of $16.2 million made by Fidelity in mid-2021. The decline in value has sparked concerns among investors and analysts who are closely watching the startup’s performance.
Implications for Gupshup
The reduction in value of Fidelity’s stake in Gupshup has significant implications for the startup’s future prospects. A lower valuation can make it more challenging for Gupshup to raise additional funding or attract new investors. However, the startup has a strong track record and has been successful in raising funds from top-tier investors.
Related Topics
- Fidelity: Fidelity is one of the largest asset management firms in the world, with over $3 trillion in assets under management.
- Gupshup: Gupshup is a business messaging platform that allows companies to communicate with their customers through various channels.
- Startups: Startups are innovative companies that have not yet achieved stability and are often characterized by rapid growth and change.
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