In 2nd markdown in 4 months, Invesco cuts Swiggy’s valuation to $5.5 billion
Invesco, a US-based fund manager, has once again slashed the valuation of Swiggy, the food and grocery delivery platform, effectively pulling its valuation below the market capitalization of its biggest rival Zomato.
As per filings, Invesco – which led Swiggy’s $700 million round in January last year – valued the Bengaluru-based company at $5.5 billion as of January 31, 2023, as per the latest filing.
The fresh valuation is about 31.2 percent lower from the $8 billion that Invesco said Swiggy was worth in March this year. When Invesco infused $700 million in Swiggy in January last year, it valued the food-tech giant at $10.7 billion at a time when the food delivery market was riding on a high.
In total, Swiggy’s valuation has been lowered by 48.6 percent from January last year, putting it behind its listed peer, Zomato, which had a market capitalization of around $6.9 billion on May 8.
However, it is important to note that these updates are from January, when even Zomato’s shares were trading much lower than their current levels, implying there could be an improvement in Swiggy’s valuation in the months to come.
Swiggy is also the second decacorn that has seen its valuation halve. Earlier this year, Blackrock cut edtech giant, Byju’s valuation to around $11.5 billion, from a high of $22 billion when the edtech sector was booming during the Covid years. Further, in September 2022, SoftBank reportedly marked down Oyo’s valuation from $10 billion to $2.7 billion.
