Swiggy, the Indian food delivery startup, is experiencing a positive shift in its valuation. Despite a decrease in its paper valuation earlier this year due to market conditions, the recent raise led by Invesco has increased Swiggy’s valuation to $7.85 billion, nearly double its previous valuation.
Key Takeaway
Invesco has raised Swiggy’s valuation to $7.85 billion, demonstrating confidence in the food delivery startup’s potential. Swiggy’s positive growth and increased market share make it an attractive candidate for investors and indicate a potential successful IPO in the future.
Background
Swiggy, backed by notable investors like SoftBank, Prosus, and Accel, faced challenges earlier this year as its valuation was slashed by over half. Market conditions and increased competition from rival Zomato caused a decline in Swiggy’s market share. The startup, which was valued at $10.7 billion in a funding round earlier this year, saw a significant drop in valuation.
Invesco’s Support
Invesco, the American asset manager, played a pivotal role in Swiggy’s recent valuation increase. In a newly published disclosure, Invesco revealed that it raised Swiggy’s valuation to $7.85 billion in July, marking a substantial increase from the previous valuation. Invesco takes into account the valuations of similar public companies when reassessing the value of its private investments. As shares of Zomato, a comparable public company, have risen by 33% since July, this suggests that Swiggy’s current valuation may be conservative.
Positive Growth for Swiggy
Swiggy’s potential for growth is further highlighted by its recent market performance. The company’s month-on-month volume saw a significant increase of 7% in July and 6% in August, surpassing Zomato’s growth in both months. This positive growth indicates that Swiggy is closing in on the market share it lost to Zomato earlier this year.
As Swiggy eyes an initial public offering next year, these developments position the company as a strong contender in the food delivery sector in India. With the support of reputable investors and a renewed valuation, Swiggy is well positioned to navigate the increasingly competitive market and continue its growth trajectory.
