Fidelity Investments Marks Down Gupshup’s Valuation to $700 Million

Fidelity Investments, a US-based asset management company, has marked down the valuation of conversational messaging unicorn Gupshup to around $700 million. This is the third time in five months that Fidelity has marked down Gupshup’s valuation.

In March 2023, Fidelity marked down Gupshup’s valuation to $957 million from $1.4 billion. In May 2023, the valuation was further slashed to $857 million. The latest markdown comes as investors are increasingly cautious about the valuation of Indian startups amid a funding winter.

Gupshup is a conversational messaging platform that helps businesses build chatbots and other conversational experiences. The company was founded in 2004 and is headquartered in San Francisco. It has raised over $500 million in funding from investors such as Sequoia Capital, Tiger Global, and Accel Partners.

The markdown of Gupshup’s valuation is a sign of the changing sentiment towards Indian startups. In recent months, there has been a sharp decline in the number of funding deals and the amount of capital raised by Indian startups. This is due to a number of factors, including the rising interest rates, the war in Ukraine, and the economic slowdown in China.

The markdown of Gupshup’s valuation is also a reminder that valuations of Indian startups are not immune to market forces. While there are still some high-growth startups that are commanding high valuations, investors are becoming more selective and are demanding more proof of traction before they commit capital.

It remains to be seen how Gupshup will fare in the current market conditions. The company has a strong product and a large customer base, but it will need to show that it can continue to grow and scale in order to maintain its valuation.

Here are some of the key takeaways from the story:

  • Fidelity Investments has marked down the valuation of Gupshup to around $700 million.
  • This is the third time in five months that Fidelity has marked down Gupshup’s valuation.
  • The markdown is a sign of the changing sentiment towards Indian startups.
  • Investors are becoming more selective and are demanding more proof of traction before they commit capital.
  • It remains to be seen how Gupshup will fare in the current market conditions.