Invesco Halves Swiggy's Valuation To $5.5 Billion In A Year

U.S. investor Invesco Inc. has again marked down the valuation of its investment in Bundl Technologies Pvt., the operator of food delivery giant Swiggy.

It values the Bengaluru-based company at around $5.5 billion as of Jan. 31 this year, according to a recent Securities and Exchange Commission filing by one of Invesco's investment funds.

This is the second cut in valuation for Swiggy by Invesco, which marked it down to $8 billion in October.

This revised valuation also represents a 48.6% haircut from $10.7 billion, at which the food ordering and delivery company had raised $700 million in January 2022.

This valuation brings it close to its listed rival Zomato Ltd., which ended trade on Monday with a market capitalisation of Rs 55,500 crore or $6.7 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. That reflects lower demand for technology as the world opened after the pandemic.