While valuation mark-ups and mark-downs barely suggest any drastic changes for the companies involved, they do manage to stir a narrative among the general public about hyper-funded startups such as Swiggy.
After facing valuation markdown by several investors, its stakeholder Invesco has marked up Swiggy’s valuation to $8 billion.
It’s worth noting that Invesco valued Swiggy at $5.5 billion in May this year. Later, it increased the Bengaluru-based company’s valuation to $7.85 billion in July’s closure.
Swiggy reached the peak value of $10.7 billion and entered the decacorn club after a $700 million round in January 2022.
During CY22 (Jan-Dec 2022), the firm’s food delivery business GMV (gross merchandise value) grew 26% year-on-year, while the GMV of its quick-commerce business ‘Instamart’ reported a 459% annual growth, according to Prosus.
In June, Prosus disclosed that Swiggy’s total revenue for the period saw a significant 40% jump to $900 million in CY2022 from around $640 million in the previous year. This further indicated that Swiggy incurred nearly $545.5 million loss during the January-December 2022 period. Prosus is the biggest stakeholder in the Bengaluru-based firm and holds 32.83% stake.
Meanwhile, Swiggy’s CEO Harsha Majety claimed that the firm’s food delivery business turned profitable as of March (2023). However, looking at the company’s 2022 results, the profitability seems distant. The company is yet to file its FY23 financial results.
While several unicorns faced valuation mark down in 2023, startups like Meesho, PineLabs and Swiggy have managed to up their valuation by their early backers.