US-based investment firm Invesco on Monday cut the valuation of the Indian food delivery major Swiggy to USD 5.5 billion in January 2023 from its last valuation of USD 10.7 billion a year earlier. This has been stated in a regulatory filing with the Securities and Exchange Commission (SEC).
It may be recalled that earlier in 2022, Invesco had led a USD 700-million funding round in Swiggy.
This new development adds Swiggy to the list of Indian startups whose valuations are going downhill. Earlier, Byju’s investor Blackrock had halved its valuation at USD 6 billion. Other companies who have faced similar cut downs include OYO, whose valuation was also slashed from USD 10 billion to USD 2.7 billion by Japanese conglomerate SoftBank last year.
The move comes at the time when the food delivery platform is already facing tough competition from Zomato and has a new rival in ONDC. Reports say that Zomato has already taken over 50 per cent of the market in the food delivery sector and ONDC is also posing to be a major threat to Swiggy.