Its closest competitor Zomato’s valuation stood at around $6.7 billion, as of Monday’s close.
In Jan. 2022, Invesco led a $700 million round in Swiggy that valued the firm at $10.7 billion.
With the rising use of smartphones and attractive discounts on offer, food delivery platforms have become increasingly popular in India. Currently, the segment, which is expected to breach the $10-billion GMV mark by 2025, is dominated by two players—Swiggy and Zomato.
However, now the entry of Open Network for Digital Commerce (ONDC), which allows restaurants to sell food directly to consumers through buyer apps, is expected to disrupt the food delivery business.
Earlier this year, Swiggy reported that annual losses more than doubled during the financial year 2022, hurt by higher expenses, even as more people used the food delivery platform. While Zomato posted a quarterly loss that widened nearly five times year on year, as a continuous surge in expenses and a slowdown in the food delivery business dampened revenue growth.
Invesco’s valuation comes at a time when investors are carefully reassessing the value of their investments due to challenging macroeconomic conditions, and this cautious sentiment is reflected in the decline of Swiggy’s valuation.
Earlier this year, private equity firm BlackRock marked down its valuation to $11.15 billion in BYJU’s. Earlier, Netherlands-based technology investor Prosus had written down the value of its existing 9.67% stake in the decacorn to a mere $578 million at the end of the September quarter, thereby pegging its valuation at about $5.9 billion.