May 18, 2023By: Anagh Pal
A markdown of a company refers to a situation where the current potential selling price of the company is lower than its valuation in the most recent round of fundraising.
Startup markdown valuations are determined by investors, such as venture capital firms. If they believe the company's value has decreased since the last funding round, they may assign a lower valuation. We look at Indian startups that have undergone recent valuation markdowns.
E-pharmacy company Pharmeasy saw its valuation slashed to $5.6 billion at its latest fund raise, to ₹4.4 billion for a second time, by Neuberger Berman, an investment management firm.
Janus Henderson, an US-based investor, had reduced the valuation of API Holdings, the parent company of PharmEasy, by 50 percent to $2.8 billion. The startup’s plans to raise funds via an IPO fizzled out last year.
Investment management firm Neuberger Berman recently submitted a regulatory document to the US Securities and Exchange Commission stating that merchant platform Pine Labs' valuation was reduced from $5 billion to $3.1 billion.
Vanguard, a US investment management company, lowered the valuation of Ola's parent firm, ANI Technologies, by 35 percent to $4.8 billion. Ola, based in Bengaluru, was previously valued at $7.4 billion.
Asset Management Invesco, in its second valuation adjustment within four months, has reduced Swiggy's valuation to $5.5 billion from ₹8.2 billion.
US-based asset management firm Baron Capital Group also cut Swiggy's valuation by 34 percent to $7.1 billion, in December 2022, according to SEC filings.
BlackRock, a US-based asset manager, has significantly reduced the valuation of the edtech major by almost 50 percent to $11.5 billion. This marks a substantial markdown from the previous valuation of $22 billion in 2022.
Softbank, the largest shareholder in the hotel-booking firm Oyo, had lowered its estimated value to Oyo to $2.7 billion from $3.4 billion, in September 2022, after comparing it with industry peers.