After receiving funding from Invesco in January 2022, Swiggy had risen to the position of most valuable Indian startup. Swiggy, a platform for food delivery, became a decacorn last year after receiving funding of nearly $700 million from the US-based investment company Invesco. Yet according to a recent filing, Swiggy’s value is reduced by Invesco to $8 billion from $10.7 billion.
Privately held businesses with a value greater than $10 billion are known as decacorns.
TechCrunch reported that Atlanta-based Invesco had reduced the value of its Swiggy assets and valued the company at approximately $8 billion in October, records showed, after raising funds in January of last year.
After receiving funding from Invesco in January 2022, Swiggy had risen to the position of most valuable Indian startup.
In 2014, Swiggy primarily launched as a platform for food delivery. In 2020, it expanded into rapid commerce with Instamart. Also, it bought the dining app Dineout.
From Rs 1,616.9 crore in FY21 to Rs 3,628.9 crore in FY22, Swiggy’s losses more than doubled. The business’ operational income, however, more than doubled to Rs 5,704.9 crore in FY22. Profitability is still a distant dream.
This event occurs at the same time as Swiggy’s co-founder Phani Kishan Addepalli has taken over leadership of Instamart following the announcement of Karthik Gurumurthy’s vacation.
Swiggy, meanwhile, closed down its meat marketplace early this year and let go of roughly 380 staff members.
“Compared to our estimates, the growth rate for food delivery has slowed down” (along with many peer companies globally ). To achieve our profitability targets, we are therefore required to review our whole indirect costs,” co-founder Sriharsha Majety had previously said in an email.
The valuation reduction indicates how the weakening market conditions have affected Indian startups.
