Invesco, the US-based asset management company, has once again revised the valuation of Indian food delivery giant Swiggy, raising it to USD 8.3 billion, according to recent regulatory filing. This marks the second consecutive adjustment to Swiggy’s valuation by Invesco.
As of 21 October 2023, Invesco held 28,844 shares in Swiggy, with a total value of USD 147.6 billion, equating to a valuation of USD 8.3 billion for the investment. Invesco currently owns approximately a 2 per cent stake in Swiggy, with a reported acquisition cost of around USD 190.5 million, as per data from Tracxn, a private markets data provider.
This valuation update follows a similar move by Invesco in October of the previous year when the company increased Swiggy’s valuation by 42 per cent, reaching USD 7.85 billion. However, it is important to note that this adjustment occurred following a period of consecutive decreases in Swiggy’s valuation.
In April of the same year, Invesco had reduced Swiggy’s valuation to USD 8 billion from the previous USD 10.7 billion, amid a global downturn in tech stocks. Subsequently, the company acknowledged slower-than-anticipated growth in the food delivery market, leading to another downward revision, pegging Swiggy’s valuation at USD 5.5 billion.
Despite Invesco’s approximately 6 per cent increase in Swiggy’s valuation with the latest adjustment, the current valuation of USD 8.3 billion still represents a decline compared to the platform’s valuation of USD 10.7 billion in January 2022. During that fundraising round, Swiggy secured USD 700 million in a funding round led by Invesco.
Investors commonly rely on public market valuations to assess private market companies, and Swiggy is no exception. The latest valuation of USD 8.3 billion as of October 2023 suggests a slight increase, with potential for further growth in the coming months, especially considering Zomato’s shares trading slightly lower during the same period.
