US-based Invesco elevates IPO- bound Swiggy's valuation to $8.3 billion

Invesco, an asset management company, has increased Swiggy's valuation to $8.3 billion, marking a consecutive surge in the Bengaluru-based foodtech major's worth over the past three months.

Invesco's holding of 28,844 shares in Swiggy, constituting a 2% stake, amounted to $147.63 million as per regulatory filings by the end of October 2023, aligning with Swiggy's valuation at $8.3 billion.

In October last year, Invesco increased the food delivery platform’s valuation to about $7.85 billion.Swiggy had reached a $10.7 billion valuation in a round led by Invesco in January 2022.

In May last year, Invesco slashed Swiggy's valuation in its holding to about $5.5 billion.

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Swiggy, based in Bengaluru, peaked at a value of $10.7 billion after a $700 million funding round in January 2022, earning its place in the decacorn club.

The company has long been contemplating an initial public offering (IPO) and reportedly plans to engage seven investment banks for its anticipated IPO in 2024.

Swiggy aims to achieve profitability before going public, announcing in May last year that its food delivery business had turned profitable when considering all corporate costs except employee stock option expenses.

Furthermore, Swiggy aims to reach profitability in its grocery delivery service, Swiggy Instamart, by March 2024, as reported exclusively by Entrackr in September 2023.

However, Swiggy faced an 80% surge in losses, amounting to $545 million in FY23, primarily attributed to investments in its grocery business, according to Prosus' annual report, a significant backer of the company. Financial results for FY23 are pending submission.

In addition to Swiggy, Meesho, PineLabs, FirstCry, and Ola Electric also experienced an increase in their valuations during the last quarter of 2023.