US-based investment firm Neuberger Berman has slashed the valuation of its stake in Indian startup Pharmeasy and fintech giant Pine Labs.
According to its regulatory filings with the Securities and Exchanges Commission in the US, The investment firm has significantly dropped the valuation mark of Pharmeasy from $5 billion to $3.1 billion and Pine Labs from $5.6 billion to $4.4 billion.
The development comes amid several elite Indian startups like Byju's, Swiggy, OYO, and Ola facing valuation markdowns from their top investors.
Pine Labs was last valued at over $5 billion after it raised a $150 million funding round from Alpha Wave Global, while PharmEasy was valued at $5.6 billion in its latest round, where it raised $350 million in a pre-IPO fundraise.
Elite investors like US-based Vanguard, SoftBank, Blackrock, and Invesco, among others, are slashing the valuations of Indian startups.
Why is Startup valuation important for investors?
Valuation is one of the primary metrics that every investor looks at before investing their money because of the uncertainty and risks that are involved, which can affect its growth. If the coming investor finds the startup overvalued, they won't invest in it, especially during the funding winter.