📈 Invesco’s latest valuation of Swiggy
Invesco raised its stake in Swiggy, valuing the Indian food delivery startup at $13.3B in July 2024. This was an increase from the $5.5B valuation Swiggy held in July 2023 during a market downturn. Invesco's stake, consisting of 28,844 shares, is now worth $237.24M, compared to its $190.47M investment in early 2022. The firm initially led a $700M funding round, which valued Swiggy at $10.7B.
📊 Market comparisons and conservative outlook
Unlike many investors who have slashed startup valuations, Invesco has adjusted Swiggy’s valuation upwards. However, it has been conservative. Swiggy’s primary competitor, Zomato, has seen a market cap between $22B and $30B. Another Swiggy investor, Baron, valued Swiggy higher at $15.1B in March 2024, showing confidence in the company’s future growth prospects.
🚀 Swiggy's IPO and market dynamics
Swiggy plans to go public within a month, aiming to raise $1.4B, with a valuation range of $13B to $15B. The company benefits from India's booming online food delivery market, where it has formed a duopoly with Zomato. Investors like Baron see strong growth, driven by a young, tech-savvy population and rising smartphone usage. The structural shifts in consumer preferences are key to Swiggy’s long-term profitability and scaling.
📉 Broader market trends for Indian startups
Despite Swiggy’s rising valuation, other Indian startups have faced cuts. Invesco reduced the valuation of Pine Labs to $3.3B from $5.5B. Similarly, 360 One, another investor, slashed the valuation of VerSe (operator of Dailyhunt) to $2.9B. These reductions show a mixed investor sentiment across the Indian startup ecosystem, especially after inflated valuations during the pandemic-driven tech boom.
Will Swiggy’s IPO hit the $15B mark or struggle?
