In a significant development, Invesco, a prominent US-based investment company, has once again elevated the valuation of Swiggy, the food delivery giant, to approximately $8.3 billion. This marks the second consecutive increase in Swiggy's valuation by Invesco, as revealed in recent regulatory filings.
Notably, Invesco had previously raised Swiggy's valuation to around $7.85 billion in October of the preceding year. The food delivery platform had earlier achieved a valuation of $10.7 billion in a funding round led by Invesco in January 2022. However, Invesco had temporarily reduced Swiggy's valuation to approximately $5.5 billion in May of the same year.
According to financial filings by Swiggy's investor Prosus in November, the food delivery giant's core business witnessed a robust 17% growth in the first half of FY24, generating a gross merchandise value (GMV) of $1.43 billion. Prosus highlighted that this growth was driven by an increase in transacting users, leading to double-digit order growth and inflation in average order value (AOV).
Prosus, holding a substantial 32.7% stake in Swiggy, reported a reduction in trading losses to $208 million, emphasizing the rapid progress of the quick-commerce business due to increased customer adoption and order growth. Basket sizes also expanded significantly, surpassing inflationary trends.
Additionally, Swiggy's foray into the financial sector showed promising results, with the platform facilitating the disbursement of loans totaling Rs 102 crore in the last 12 months. Notably, Rs 10.1 crore was disbursed in November alone.
However, despite these positive developments, Swiggy reported losses of approximately $545 million for the entire FY23, marking an 80% increase compared to the approximately $300 million recorded in FY22. The company continues to navigate the dynamic landscape of the food delivery and quick-commerce sectors, leveraging its strategic partnerships and innovative approaches to sustain growth.
(With Agency Inputs)
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