Invesco has increased the valuation of the food and grocery delivery platform Swiggy by approximately 9% to $8.5 billion in its records as of October 31, according to the filings submitted to the US Securities and Exchange Commission by the US asset manager.
Invesco has also adjusted the valuation of the fintech startup Pine Labs to $3.9 billion, down from the previous valuation of $4.1 billion.
Swiggy’s Fluctuating Valuation:
This marks the second consecutive increase in Swiggy’s valuation by the investor. The valuation of the Bengaluru-based food delivery platform was raised to $7.8 billion as of July 31. Earlier in the year, Invesco had reduced the value of Swiggy in its records to $5.5 billion.
Read Other Articles: Swiggy’s valuation skyrockets 42% to $7.85B following Invesco’s review
The most recent valuation, however, remains lower than Swiggy’s peak valuation of $10.7 billion, which was assigned at the beginning of 2022 when Invesco spearheaded a $700-million funding round for the company.
Crossover funds typically review and adjust the valuations of their investments on a quarterly basis.
Among various factors, adjustments in valuations by investors in privately held companies frequently mirror shifts in their public market counterparts.
From July 31 to October 31, the market capitalization of Swiggy’s listed competitor, Zomato, grew by approximately 25% to reach about $11 billion. According to data from the Bombay Stock Exchange (BSE) as of Thursday, Zomato now holds a market capitalization of around $13 billion.
Swiggy has reportedly initiated talks with bankers in August to assess its valuation, in preparation for a potential initial public offering (IPO) this year.
Read Other Articles: Swiggy lays groundwork for mega IPO launch; taps top banks for key advisory roles
Baron Capital, another US-based asset manager with investments in Swiggy, increased its investment to $8.5 billion in August. During that period, Baron Capital elevated Swiggy’s valuation by 34% compared to its previous assessment.
The primary shareholder, Prosus, recently reported that Swiggy’s loss decreased by 35% from a year ago, reaching $208 million for the half-year ended September 30. Previously, Prosus had indicated that Swiggy had incurred a loss of approximately $540 million between January and December 2022.
Read Other Articles: Swiggy’s food delivery sales soar 17%, hits $1.43 Billion GMV in first half of FY24: Prosus
Swiggy and Zomato have been engaged in a intense competition for market share in the Indian food delivery industry, concurrently competing in the quick commerce ecosystem through their Instamart and Blinkit verticals.
Brokerage firms estimate Swiggy’s market share to be around 45% in the virtual duopoly till the middle of 2023.
Nevertheless, the two companies have recently attracted the attention of the government. Swiggy received a notice for approximately INR 350 crore in unpaid goods and services tax (GST) from the tax authorities, while Zomato received a notice for INR 402 crore in similar unpaid taxes.
Read Other Articles: Zomato and Swiggy grapple with INR 1,000 Cr GST notices as tax authorities include delivery charges in revenue assessment