After Invesco, Swiggy's Valuation Cut 34% By U.S. Investor Baron Capital

The fair value of Bundl Technologies Pvt., the owner of Swiggy, was marked down in the books of U.S.-based investor Baron Capital by 34% as startups continue to witness drawdowns amid limited access to capital.

Baron Capital, which holds about 0.8% in Swiggy via its Emerging Markets Fund, bought about 11,578 shares in the food delivery giant for about $76.7 million in January 2022, according to Securities and Exchange Commission filings.

As of December 2022, it had marked down the value of its investment to $50.9 million, a cut of about 34%. This also translates to an implied valuation of Swiggy of $6.3 billion, down from $9.5 billion.

This is the second investor that has cut Swiggy's valuation in its book. Earlier, Invesco had also marked down its valuation to around $5.5 billion as of Jan. 31 this year. That was the second cut by Invesco itself.

This valuation brings it close to its listed rival, Zomato Ltd., which trades at a market capitalisation of Rs 54,890 crore, or $6.8 billion.

The sharp trim in Swiggy's valuation is representative of a changing capital market where a defined path to profitability and focused ambitions have taken precedence over growth and blitzscaling.

Swiggy's losses in fiscal 2022 climbed to Rs 3,628.9 crore, with revenue of about Rs 5,704.9 crore.

Valuations of privately held tech giants like Byju's and Oyo and even listed companies like Zomato Ltd., Nykaa's parent FSN E-Commerce Ventures Ltd., and Paytm's parent One97 Communications Ltd. have tumbled after a bumper 2021.