US Investment Firm Invesco Ups Swiggy Valuation To $8.3B

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.

Read Next: Mukul Agrawal Picks Up Stake In This Micro Cap Stock Shares Jump 4


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