In FY22, Swiggy’s losses more than doubled to Rs 3,628.9 crore from Rs 1,616.9 crore in FY21
In January 2022, after raising funds from Invesco, Swiggy had become the most-valued Indian startup
- Updated Apr 01, 2023, 12:27 AM IST
Food delivery platform Swiggy achieved the status of decacorn last year after it raised about $700 million from US-based investment firm Invesco. However, a recent filing reveals that Invesco has slashed Swiggy’s valuation to $8 billion from $10.7 billion.
Decacorns are privately-held firms that exceed the valuation of $10 billion.
According to a report by TechCrunch, after raising funds in January last year, Atlanta-headquartered Invesco had slashed the value of its Swiggy holdings and valued the firm at about $8 billion in October, filings showed.
In January 2022, after raising funds from Invesco, Swiggy had become the most-valued Indian startup.
Swiggy primarily started off as a food delivery platform in 2014 and later diversified into quick commerce with Instamart in 2020. It also acquired restaurant-hunting app Dineout.
In FY22, Swiggy’s losses more than doubled to Rs 3,628.9 crore from Rs 1,616.9 crore in FY21. However, the company’s operating revenue more than doubled to Rs 5,704.9 crore in FY22. The dream of profitability still remains afar.
This development comes at a time when Instamart’s head Karthik Gurumurthy announced his sabbatical, handing over the reins to Swiggy’s co-founder Phani Kishan Addepalli.
Meanwhile, Swiggy shut down its meat marketplace earlier this year along with letting go of about 380 employees.
“The growth rate for food delivery has slowed down versus our projections (along with many peer companies globally ). This meant that we needed to revisit our overall indirect costs to hit our profitability goals..,” co-founder Sriharsha Majety had written in an email at the time.
The valuation cut reflects the impact of the dwindling market conditions on the Indian startups.