In a recent update, Fidelity, the prominent asset manager of the U.S., made significant cuts to its investment in the startup Gupshup, a SAAS platform. It slashed its estimated worth by over 20% within just a month. At the end of June, this asset manager valued the total holding in Gupshup at $8.08 million, a notable plunge from $10.15mn a month earlier.
This amounts to more than a 50% decrease since Fidelity’s initial investment in mid-2021. Back in 2021, Fidelity had invested $16.2 million from Blue Chip Growth Fund into Gupshup that raised the value of the SaaS company to $1.4 billion. However, the recent markdown indicates that the startup’s performance may not have met expectations, leading to concerns among investors.
On a more positive note, Fidelity made slight improvements in the value of its holdings in several other companies. These include Twitter-parent X Holdings, Reddit, Indian e-commerce, Discord, and Meesho during the same month.
Gupshup, which has its roots in India and has been in operation for 17 years, managed to raise $340 million in 2021 from a group of investors that included Tiger Global, Think Investments, and Malabar Investments.