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Invesco has recently cut Swiggy’s valuation by half to $5.5 billion from $10.7 billion. This is the second time this year that Invesco has slashed Swiggy’s valuation. The investor had led Swiggy’s last round at a $10.7 billion valuation in January 2022. The current valuation cut was revealed through regulatory filings with the US’ Security and Exchange Commission (SEC).
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Valuation Details
According to the SEC filings, Invesco has valued Swiggy’s shares at $3,305 as of January 31, 2023, down from $4,759 in October 2022. In April, Invesco had already cut Swiggy’s valuation to $8.2 billion from $10.7 billion. The recent valuation cut comes amidst the company’s preparation for a potential downround. Entrackr had exclusively reported about this earlier this month, but Swiggy had denied it.
Swiggy’s IPO Preparation
Swiggy has been laying the groundwork for its IPO next year and has set a target to turn its core food delivery business profitable this month. Entrackr was the first to report about its IPO plan and profitability in February. Swiggy raised its last round in January 2022 at a valuation of more than $10 billion. Its rival Zomato went for an IPO in July 2021 at a valuation of $12 billion but since then has lost around 45% of its market cap in the past 21 months.
Swiggy’s Gross Revenue and GMV
Swiggy’s gross revenue (GMV) surged 2.2 times to Rs 5,705 crore in FY22. However, its losses also soared 2.2 times and stood at Rs 3,629 crore, as per Fintrackr’s analysis. For the first half of FY23, the company’s restaurant food delivery GMV was $1.3 billion (more than Rs 10,000 crore), while quick commerce GMV was $257 million (over Rs 2,000 crore), according to a report published by the company’s early backer Prosus. The firm is yet to file its FY23 numbers.
Conclusion
Swiggy’s recent valuation cut comes as a shock to the company and its investors. The company’s IPO preparation and profitability target remain unaffected by the cut, and it remains to be seen how it will impact Swiggy’s future growth and expansion plans. However, with Swiggy’s impressive GMV and growing revenue, it is possible that the company will recover from the setback and continue to expand its business in the future.
