Invesco boosts Swiggy's valuation to $8B

Swiggy, the Indian foodtech startup, has recently seen a significant valuation boost of over 42% to $7.85B, courtesy of Atlanta-based investment firm Invesco, according to the firm's latest financial disclosures.

• Valutaion Jump: The most recent valuation is a jump from the $5.5B valuation maintained at the end of April 2023.

• Share Value: Invesco possesses 24,844 shares in Swiggy, amounting to a total value of $135.6M—each share is valued at $4,703.

• Post-Invesco Cut: This valuation surge marks the first major advancement for Swiggy after two sequential markdowns by Invesco, who initially acquired a stake in Swiggy in January 2022 leading a $700M funding round at a $10.7B valuation.

• Competitor: Swiggy and its competitor Zomato remain neck-to-neck in valuation terms, with Zomato’s market cap standing at around $7.7B on the BSE in July; however, following a 30% jump, Zomato’s market capitalisation currently stands at INR 98,004 Cr ($11.7B).

• Other Investors: US-based asset management company Baron Capital Group also increased Swiggy's valuation by 33.9% QoQ to $8.54B as of June 2023.

• Strategic Changes: Swiggy has implemented strategic changes to prioritize sustainable and profitable growth amid the turbulent startup ecosystem, leading to a pan-industry streamlining exercise.

The company recently reported profitability in its food delivery business (excluding ESOP costs) as of March 2023, despite a consolidated loss of INR 3,629 Cr in FY22 on a revenue of INR 5,704.9 Cr.

As part of future plans, Swiggy is reportedly contemplating a public listing in 2024 and has elevated its platform fee from INR 2 to INR 3 per order.