• Mon. Jun 17th, 2024

Invesco raises Swiggy’s valuation to $8.3 billion

Byusanewscart.com

Jan 4, 2024
Invesco raises Swiggy’s valuation to $8.3 billion

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MUMBAI: In a boost for Swiggy, its US-based investor Invesco has yet again marked up the startup’s valuation. Regulatory filings made with the US Securities and Exchange Commission showed that the asset manager valued the food delivery company at about $8.3 billion as of October 31, 2023. This is higher than the valuation of $7.8 billion that Invesco had ascribed the Bengaluru-based firm in its earlier mark up at the end of July.
With this recent mark up, Invesco has raised the startup’s valuation for a second straight time. The firm held about 2% stake in Swiggy as of November 2023, data sourced from market research firm Tracxn showed. The valuation boost is a positive development for Swiggy which is understood to be preparing for public market debut. The latest valuation, is however, lower than the firm’s peak valuation of $10.7 billion at which it had raised $700 million from investors led by Invesco in January 2022.
The company which rivals Zomato in a competitive market has been making attempts to reduce its cash burn and move towards profitability. Last year, co-founder & CEO Sriharsha Majety in a blog post had said that Swiggy’s core food delivery business has turned profitable as of March 2023 excluding employee stock option costs. Zomato recorded its first quarterly profit in Q1FY24 and has sustained it through Q2.
Amid a funding winter and strict investor vigilance, Swiggy had faced valuation mark downs by investors last year with Invesco having slashed its valuation to $5.5 billion (as of January 2023.) The firm’s investor Prosus late last year said that Swiggy has been working to improve its profit trajectory and doing everything it can to “close the gap” with its competitor.



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