Invesco Slashes Swiggy’s Valuation By 25% To $8 Bn


US-based investor Invesco has marked down the valuation of Indian foodtech major Swiggy by more than 25% to $8 billion. Invesco had led a $700 million round in Swiggy at a valuation of $10.7 billion earlier. Swiggy has not commented on the matter. In October 2022, Invesco reportedly valued Swiggy at $4,759 per share, down from $6,212 in July 2022. This markdown comes amid volatile market conditions and weak global cues. Swiggy has also been grappling with mounting losses and cash burn and was in the news earlier for mass layoffs and restructuring. Its competitor Zomato has seen a significant drop in market capitalization too.

 Swiggy’s markdown comes at a time when the larger listed new-age tech startups have seen a washout on the stock market. Zomato, Swiggy’s competitor, has also seen a significant drop in market capitalization, falling by more than 69% from its all-time high of INR 169 in November 2021. Additionally, Swiggy has been facing concerns about an impending recession and reduced discretionary spending by users.

 SoftBank had slashed portfolio startup OYO’s valuation from $10 billion to $2.7 billion in the previous year. In addition, Prosus had marked down its stake in edtech major BYJU’s to $578 million, which is significantly lower than the $22 billion valuation at which the company last raised capital. These markdowns reflect the challenging environment for new-age tech startups in India, where investors are becoming more cautious due to the uncertain market conditions and the ongoing COVID-19 pandemic.