HSBC has significantly reduced its valuation estimate for B2B e-commerce firm ElasticRun to $800 million, pushing it below the coveted $1-billion ‘unicorn’ threshold. This marks a substantial drop from the $1.5 billion valuation ElasticRun achieved in 2022 following a $300-million funding round backed by SoftBank and Prosus.
In a research note dated May 21, HSBC also revised its valuation estimates for other prominent startups. The valuation for e-tailer Meesho was lowered by 14% to $2.5 billion, and agritech firm Dehaat saw an 11% reduction to $400 million. However, Meesho is reportedly in the midst of a $ 600 million funding round, which includes both primary and secondary share sales. Of this amount, $295 million has already been secured, and the round is expected to close at a valuation of up to $4 billion.
Pune-based ElasticRun collaborates with FMCG brands to enhance their reach in rural markets. The company also provides lending services and operates its own logistics network across India.
These periodic valuation assessments are conducted by top brokerages and are akin to the evaluations performed by institutional funds invested in startups.
ElasticRun’s spokesperson declined to comment on HSBC’s valuation estimates.
While ElasticRun’s valuation has been marked down, other top startups have experienced upward revisions. For instance, US-based asset manager Baron Capital Group recently increased the fair value of Swiggy to $12.1 billion, a 13% rise from the $10.7 billion valuation at which the Bengaluru-based food-delivery platform last raised funds in 2022.
The same HSBC note, first reported by ET in its online edition on Thursday, revealed that Dutch-listed technology investment firm Prosus’ nearly 10% stake in Byju’s now holds no value, citing severe cash flow issues and ongoing legal battles faced by the troubled Indian tech firm.
“We assign zero value to Byju’s stake amid multiple legal cases and funding crunch,” stated HSBC. “Previously, we valued around 10% stake in Byju’s by applying an 80% discount to the latest publicly disclosed valuation.”
