[ad_1]
Conditions seem to be changing favorably for Swiggy in India. The food delivery startup – backed by SoftBank, Prosus and Accel – saw its paper valuation tumble by more than half this year as investors largely marked down their stakes in response to declining market conditions. The startup, which raised $10.7 billion in a funding round in early 2022, also lost some market share to its arch publicly listed rival Zomato, according to Prosus.
Now, not so much.
According to a newly published disclosure, Invesco, which had led Swiggy’s previous round and underpinned its valuation at $5.5 billion, marked the startup’s valuation to $7.85 billion at the close of July.
Zomato share price. (Chart: S&P Global Market Intelligence)
The US asset manager says he considers the valuations of similar public companies as a factor when reevaluating the value of his private investments. Given that Zomato shares have risen 33% since late July, this could mean the current $7.85 billion valuation for privately held Swiggy may be conservative.
Separately, Swiggy, which plans to launch an initial public offering next year, looks to capture some of the market share lost to Zomato this year. UBS said in a report last week that Swiggy’s month-on-month volume grew by 7% this July and 6% in August, outpacing Zomato in both months.
Data and image: UBS
