US-based investor Invesco cut food delivery major Swiggy’s valuation to $5.5 billion in January 2023 from its last valuation of $10.7 billion in January 2022, according to Invesco’s latest filings with the Securities and Exchange Commission (SEC).
In October 2022, Invesco slashed Swiggy’s valuation to $8-billion valuation. Invesco had led a $700-million funding round in Swiggy in January 2022. This development follows a slew of valuation cuts in the Indian start-up ecosystem. Byju’s valuation has been halved by its investor Blackrock.
Similarly, Prosus, too, pegged BJYU’s valuation at $6 billion in November 2022. BJYU’s raised its last funding round at a valuation of $22 billion. In late 2022, Oyo’s valuation was also slashed from $10 billion to $2.7 billion by Japanese conglomerate, SoftBank.
As the macroeconomic environment worsened, Swiggy has turned its focus on profitability. It closed/sold businesses, including its meat marketplace and cloud kitchens network, Access Kitchens. This resulted in about 380 job cuts across product, operations and engineering teams.
The company cited challenging macroeconomic conditions and overhiring in 2021 as the main reasons for layoffs. Swiggy’s losses more than doubled to ₹3,629crore in FY22 against ₹1,617-crore loss in FY21. The company’s operational revenue registered almost two-fold growth against ₹2,547 crore in FY21.
Swiggy’s marketplace business contributed ₹3,483 crore to revenue from operations, which is almost 60 per cent of the total. Its business-to-business (B2B) vertical, which involves trading in FMCG goods, contributed ₹2,147 crore to its operational revenue.