The third seeded Indian was beaten by New Zealand qualifier Finn Tearney 6-1, 6-7(4), 4-6 in two hours and 27 minutes.
Somdev, ranked No 136, raced away with the first set, effecting three breaks while dropping serve once.
However, the struggling Indian was in for a surprise thereafter as Tearney came back strongly in the second. After the players broke each other twice, the Kiwi levelled the set scores by prevailing in the tie-breaker.
The third set was intense, but Tearney broke twice after being broken once to clinch the issue.
Somdev is also playing in the doubles event, partnering compatriot Sanam Singh. They are seeded fourth and play the Aussie pair of Maverick Anes and Gavin Van Peperzeel in their opening round.
Image: Somdev Devvarman
Photograph: Renee McKay/Getty Images
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