Fidelity Investments has slashed the valuation of Gupshup, a cloud-based chat development platform, to $876 million, representing a 37% decrease. This reduction aligns
with the current trend of cautious investors lowering valuations for Indian unicorns and tech startups.
Fidelity made the decision to reduce Gupshup’s valuation. This decision was influenced by Fidelity’s evaluation of Gupshup’s financial performance and future prospects. In recent quarters, Gupshup has encountered a decline in revenue growth. Additionally, the company is encountering heightened competition from alternative chat platforms.
Gupshup is not alone in experiencing a valuation cut among Indian unicorns. In May, SoftBank Group lowered the valuation of BYJU’S, an online education company, by 62%. Additionally, Tiger Global Partners reduced the valuation of Meesho, a social commerce platform, by 10% in March.
The valuations of Indian unicorns are decreasing, indicating investor caution towards tech startup valuations. This cautiousness is influenced by several factors. These factors include rising interest rates, the conflict in Ukraine, and the ongoing global chip shortage.
The valuation cuts have uncertain effects on the funding landscape for Indian unicorns. Investors are becoming more selective in their investment choices. This could lead to a funding slowdown for Indian startups in the upcoming months.
