Invesco Boosts Valuation of Swiggy by 9%, Elevating Food Delivery Firm to $8.5 Billion

Invesco has recorded a 9% increase in the valuation of Swiggy, the food and grocery delivery platform, now standing at $8.5 billion as of October 31, as disclosed in the filings submitted to the US Securities and Exchange Commission by the US asset manager. In addition, Invesco has adjusted the valuation of the fintech startup Pine Labs to $3.9 billion, down from its previous valuation of $4.1 billion.

This marks the second consecutive upward adjustment of Swiggy’s valuation by the investor. In July, the Bengaluru-based food delivery platform’s valuation was elevated to $7.8 billion. However, earlier in the year, Invesco had initially reduced the value of Swiggy in its books to $5.5 billion. The current valuation, although an increase, remains below Swiggy’s peak valuation of $10.7 billion. Which was assigned at the beginning of 2022 when Invesco spearheaded a $700-million funding round in the company.

Crossover funds typically conduct quarterly assessments and adjustments of the valuations of their investments. Valuation revisions in privately held companies by investors often mirror shifts in their counterparts within the public market, among other influencing factors.

From July 31 to October 31, Zomato, the listed rival of Swiggy. They experienced a notable 25% surge in its market capitalization, reaching approximately $11 billion. As of Thursday, data from the Bombay Stock Exchange (BSE) indicates that Zomato’s market capitalization stands at around $13 billion.

Meanwhile, Swiggy has reportedly engaged in discussions with bankers to evaluate its valuation in August. A move seen as part of the groundwork for a potential initial public offering (IPO) later this year.

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n August, Baron Capital, a US-based asset manager with investments in Swiggy, increased its investment valuation to $8.5 billion. During this adjustment, Baron Capital elevated Swiggy’s valuation by 34%, surpassing its previous valuation.

The primary stakeholder, Prosus, recently reported a 35% reduction in Swiggy’s loss from the previous year, amounting to $208 million for the half-year concluded on September 30. Initially, Prosus had indicated Swiggy’s loss at approximately $540 million for the period spanning January to December 2022.

Swiggy and Zomato find themselves engaged in an intense competition for market dominance in the Indian food delivery sector, concurrently navigating the quick commerce landscape with their respective Instamart and Blinkit verticals. Until mid-2023, brokerage firms estimate Swiggy’s market share to be approximately 45% in the virtual duopoly.

Nevertheless, both companies have recently drawn government scrutiny. Swiggy has been served a notice by tax authorities for unpaid goods and services tax (GST). It amounting to around Rs 350 crore, while Zomato faces a similar notice for Rs 402 crore in unpaid taxes.