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India's leading food delivery company, Swiggy, has faced a significant setback as its valuation was slashed by $2.7 billion by Invesco, one of its prominent investors. According to recent reports, the US-based investment management firm has downgraded Swiggy's valuation to $5.5 billion, a massive dip from the previous $8.2 billion.
This marks the second time in four months that Invesco has cut the company's valuation.
The markdown comes as a major blow to Swiggy, which has been grappling with challenges posed by the COVID-19 pandemic and stiff competition from other players in the food delivery market, such as Zomato. The cut in valuation is expected to have significant implications for Swiggy's future fundraising plans and growth trajectory.
Despite raising $1.25 billion in July 2022, which led to its valuation soaring to $8.2 billion, Swiggy has been unable to maintain its position in the face of mounting challenges. The first valuation cut by Invesco happened in January 2023, when the investment firm reduced Swiggy's valuation to $6.3 billion. The latest cut further highlights the mounting concerns surrounding the company's future.
Swiggy, founded in 2014, has been a major player in India's food delivery ecosystem, serving millions of customers nationwide. With a vast network of restaurants and delivery partners, the company has played a crucial role in shaping the food delivery landscape in India. However, the recent setbacks have raised questions about Swiggy's ability to sustain its position in an increasingly competitive market.
The food delivery giant's management is yet to state the latest valuation cut by Invesco. However, it remains to be seen how Swiggy will navigate these challenges and steer its way back to growth in the coming months.