US-based Invesco has marked up the valuation of food delivery startup Swiggy, by 19% to $12.7 billion, for the second time this year ahead of its initial public offering (IPO).
In January, Invesco marked up the valuation of Swiggy by 9% to $8.3 billion. The asset management company, which has a 2% stake in Swiggy, had marked up its valuation to $7.85 billion in Oct from $5.5 billion previously.
The SoftBank-backed company could list by the end of this year, according to media reports. Last month, Swiggy recorded a $200-million loss for the nine months to December 2023.
The three consecutive markups in valuation came after Invesco cut Swiggy’s valuation to $8 billion from $10.7 billion in April, followed by another mark-down to $5.5 billion.
Another US-based investor, Baron Capital, which had cut the valuation of its holding in Swiggy by 10% at the end of the March quarter in 2023, marked up its valuation by 34% to $8.5 billion in August.
For the full fiscal year 2022-23, Swiggy recorded a loss of Rs 41.8 billion ($500 million), Reuters had reported. But the company’s lower wage payouts and cuts in marketing spending will help it trim losses for the full year 2023-24, a source with direct knowledge of the matter said, without wishing to be identified.
With the rising use of smartphones and attractive discounts on offer, food delivery platforms have become increasingly popular in India. Currently, the segment, which is expected to breach the $10-billion GMV mark by 2025, is dominated by two players—Swiggy and Zomato.
To gain a bigger share of the market, both Swiggy and Zomato have been experimenting in areas including grocery delivery, competing with players such as Zepto and Dunzo.
Swiggy was valued at $10.7 billion by investors in 2022.
