Invesco Marks Up Swiggy’s Valuation to $8.3 Billion in Second Consecutive Boost
- ByStartupStory | January 5, 2024
Invesco, a US-based fund manager, has increased the fair value of Indian food aggregator Swiggy for the second consecutive time, now valuing the company at $8.3 billion, according to a regulatory filing as of October 31, 2023.
With a 2% stake in Swiggy, Invesco’s 28,844 shares were valued at $147.6 million, reflecting the revised fair value of $8.3 billion. This marks a turnaround for Swiggy, which saw two consecutive markdowns by Invesco in the past. In January 2022, Invesco led a $700 million funding round that valued Swiggy at $10.7 billion. However, the company’s valuation was subsequently reduced to $8 billion in September 2022 and further down to $5.5 billion by April 2023.
The recent upward revision brings Swiggy’s valuation back to $8.3 billion as of October 31, 2023, although it remains lower than the 2022 valuation. This positive development comes amid a series of valuation markdowns for Indian startups by global investment firms such as Prosus and Neuberger Berman. Swiggy’s improved financial metrics and a more favorable macroeconomic environment are attributed to this reversal.
Swiggy CEO Sriharsha Majety had previously stated that the company’s food delivery business achieved profitability (excluding ESOP costs) as of March 2023. However, Swiggy reported a consolidated loss of INR 3,629 crore in FY22 on a revenue of INR 5,704.9 crore.
In a related development, Swiggy’s competitor Zomato witnessed a positive financial turnaround, with its market capitalization surpassing INR 1 lakh crore in November. Zomato reported its second consecutive profitable quarter, with a profit after tax of INR 36 crore during the September quarter of FY23-24.
The online food delivery market is expected to grow significantly, reaching $81.9 billion by 2028, with a compound annual growth rate (CAGR) of 19.7% during 2023-2028.
Looking ahead, Swiggy is preparing for its stock market debut, anticipated to take place in mid-2024. The initial public offering (IPO) is expected to be substantial, with an impressive issue size of $1 billion, making it one of the most significant IPOs by an internet company this year.
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