Invesco, a US-based fund manager, has reevaluated and increased the fair value of Swiggy, a popular food and grocery delivery platform, marking a shift after two consecutive valuation cuts in the past four months. Invesco, which led a $700 million funding round for Swiggy in January last year, now values the Bengaluru-based company at $7.85 billion, up from the previous valuation of $5.5 billion as of July 31, 2023.
This change marks a notable 42 percent rise from Invesco’s previous valuation, yet it remains 30 percent below Swiggy’s valuation in January 2022. In the $700 million funding round led by Invesco last January, Swiggy’s valuation reached an impressive $10.7 billion, indicating the optimistic outlook in the thriving food delivery sector. However, the market has witnessed a slowdown, as recognized by Swiggy, Zomato, and other global players, deviating from the rapid growth initially anticipated.
The latest increase in fair value brings Swiggy’s valuation closer to its competitor, Zomato, which was valued at around $7.7 billion as of July. However, Zomato has experienced a surge in its share price by over 30 percent since then, now reaching a valuation of over $11 billion due to improvements in its financial performance.
Invesco’s upward adjustment of Swiggy’s valuation signals a positive assessment amid challenges in the food delivery market. Swiggy, acknowledging a slower-than-expected growth trend shared by industry peers, now sees an increased valuation closer to Zomato’s standing. This move reflects investor confidence in Swiggy’s resilience and ability to adapt to market dynamics. As the food delivery landscape evolves, sustained performance and strategic adjustments will be crucial for Swiggy to maintain and potentially enhance its value. Observers will keenly watch Swiggy’s strategies and performance in the competitive sector.
