Invesco, a US-based investment company, has elevated the valuation of Indian food delivery giant Swiggy to about $8.3 billion, according to recent regulatory filings.

What Happened: As the Economic Times reports, this is the second consecutive time Invesco has augmented Swiggy’s valuation. In October, the firm estimated Swiggy’s value at nearly $7.85 billion.

In January 2022, Swiggy’s valuation reached a high of $10.7 billion following a funding round steered by Invesco. However, the investment firm reduced the valuation in its holdings to approximately $5.5 billion in May.

Another investor, Prosus, revealed in its financial documents that Swiggy’s primary food-delivery business observed a 17% surge, delivering a gross merchandise value (GMV) of $1.43 billion in the first half of FY24.

See Also: What Is Swiggy Share Price And How To Buy?

Despite the reduction of trading losses to $208 million, Swiggy’s total losses for FY23 were about $545 million, an 80% increment from the $300 million in FY22.

Why It Matters: The valuation rise comes amidst Swiggy’s attempts to increase revenue and offset losses. In October 2023, Swiggy increased its platform fee by 50%, from ₹2 to ₹3, following its rival Zomato’s footsteps.

Interestingly, both food delivery platforms, Swiggy and Zomato, faced a tax bill of approximately ₹500 crore each over their delivery charges in November 2023. The tax notices were related to a dispute involving nearly ₹1000 crore between tax authorities and food delivery apps regarding the delivery fees charged to customers.

The increased valuation indicates Invesco’s confidence in Swiggy’s growth potential despite these challenges.

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