[the_ad id="83613"]

Invesco slashes Swiggy’s valuation to $5.5 Bn


Invesco has slashed Swiggy’s valuation for the second time this year. The investor, which led Swiggy’s last round at a $10.7 billion valuation in January 2022, now nearly halved the valuation of the startup to $5.5 billion, according to regulatory filings with the US’ Security and Exchange Commission (SEC).

According to the SEC filings, Invesco has valued Swiggy’s shares at $3,305 as of January 31, 2023, down from $4,759 in October 2022.

In April, Invesco cut Swiggy’s valuation to $8.2 billion from $10.7 billion.

The valuation cut comes amidst the company’s preparation for a potential downround. Entrackr had exclusively reported about this earlier this month. Swiggy, however, had denied it. The valuation cut by Invesco was first reported by TechCrunch.

Moreover, Swiggy has been laying the groundwork for its IPO next year and set a target to turn its core food delivery business profitable this month. Entrackr was the first to report about its IPO plan and profitability in February.

As mentioned above, Swiggy raised its last round in January 2022 at a valuation of more than $10 billion. Its rival Zomato went for an IPO in July 2021 at a valuation of $12 billion but since then it has lost around 45% of its market cap in the past 21 months.

Swiggy’s gross revenue (GMV) surged 2.2X to Rs 5,705 crore in FY22. As per Fintrackr’s analysis, its losses also soared 2.2X and stood at Rs 3,629 crore. For the first half of FY23, the company’s restaurant food delivery GMV was $1.3 billion (more than Rs 10,000 crore), while quick commerce GMV was $257 million (over Rs 2,000 crore), according to a report published by the company’s early backer Prosus. The firm is yet to file its FY23 numbers.

About Author

Send Suggestions or Tips