The circumstances are looking more favorable for Swiggy, a food delivery startup in India. In the past year, Swiggy’s valuation took a significant hit, dropping by over 50%, due to challenging market conditions. Even though it faced increased competition from Zomato, its publicly listed rival, and lost market share, things are changing.
Invesco, the leading investor in Swiggy’s previous funding round, initially reduced Swiggy’s valuation to less than $5.5 billion. However, in July, they reevaluated and increased the startup’s valuation to $7.85 billion, as reported in a recent disclosure.
Invesco takes into account the valuations of similar public companies when reassessing their investments in private companies. Considering that Zomato’s shares have risen by 33% since the end of July, the $7.85 billion valuation for Swiggy may now be conservative.
Furthermore, Swiggy, which is planning to go public next year, seems to be recovering some of the market share it lost to Zomato this year. Swiggy’s monthly order volume grew by 7% in July and 6% in August, outperforming Zomato in both months, according to a report by UBS published this month
