Swiggy's investor slashes its valuation by $2.7 billion, as startup plans IPO

Swiggy has been delivering fufilling meals across Indian cities for close to a decade now, but it's yet to dish out stocks for retail investors. As the firm is eyeing a stock market debut by September this year, a jolt to its valuation could sour the IPO for the food delivery giant.

Its US-based investor Invesco has cut down the valuation for Swiggy to $8 billion from $10.7 billion in its books.

Brought down by its own investor

• The action came little more than a year after Invesco led a $700 million funding round for Swiggy in January 2022.

• Swiggy isn't the only Indian firm facing a markdown by its own investor, as Oyo was brought down from $10 billion to $2.7 billion by SoftBank in September last year.

• After a massive loss at Byju's its investor Prosus also reduced its valuation to $6 billion on its books, which is a crash from the edtech startup's last known $22 billion value.

Rival not doing well as well

• Swiggy's rival Zomato, which launched its IPO in 2021, has lost 40 per cent of its market valuation in the past one year.

• It had been considered overvalued by many analysts at the time of its stock market debut.

• Swiggy has also been trying to cut down costs, by shutting down its meat market and selling its cloud kitchen business in a share swap.