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.
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