As per the latest filings, Invesco has valued Swiggy‘s shares at $3,305 as of January 31, 2023, down from $4,759 in October 2022.
The development was first reported in tech publication TechCrunch.
This is the second time Invesco has trimmed the valuation in the food delivery firm. We reported last month that Invesco had marked down its investment in food delivery firm Swiggy by 23%.
According to filings ET had reviewed, Invesco’s valuation of Swiggy’s shares as of October 2022 was lower than that in July when they were valued at $6,212 a piece, putting the company’s valuation at $8.2 billion. Swiggy was valued at $10.7 billion after it closed a $700-million round in January 2022.
The markdown comes amid an ongoing funding winter that has made fundraising difficult for startups worldwide as investors have heightened their scrutiny and due diligence before placing any large bets.
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Swiggy’s valuation challengesThe consecutive drops in Swiggy’s valuation comes amid challenges for the SoftBank-backed company. It had fired 380 employees this year as its core food delivery business slowed. Meanwhile, rival Zomato, since the relaunch of its loyalty programme Zomato Gold, has started reclaiming the market share it had lost in the second half of 2022 to Swiggy, HSBC Global Research said in a note.
Swiggy’s quick commerce unit Instamart is lagging rival Zomato’s grocery delivery business Blinkit, according to a report by brokerage firm Jefferies. In the first six months of 2022, Instamart recorded a gross merchandise value (GMV) of $257 million, compared with the $270 million GMV recorded by Zomato-owned Blinkit, the report added.
ET had reported that Instamart head Karthik Gurumurthy will step aside by the end of April. Swiggy cofounder Phani Kishan Addepalli is slated to take over. Swiggy had confirmed the development to ET.