US-based fund manager Invesco has revised Swiggy’s fair value upwards for the second consecutive time, setting the food aggregator’s valuation at $8.3 billion, according to a regulatory filing dated October 31, 2023.

Invesco, holding a 2% stake in Swiggy with 28,844 shares, now values its holdings at $147.6 million, reflecting the new fair value of $8.3 billion. The initial acquisition cost for this stake, as per Tracxn data, was $190.5 million.

This marks a turnaround for Swiggy, experiencing its second valuation increase after facing two consecutive markdowns by Invesco. The US-based asset management company initially acquired a stake in January 2022, leading a $700 million funding round that valued Swiggy at $10.7 billion.

However, subsequent markdowns by Invesco saw Swiggy’s valuation drop to $8 billion in September 2022 and further down to $5.5 billion by the end of April 2023. The recent upward revision brings Swiggy’s valuation back to $8.3 billion as of October 31, 2023, which is still below its 2022 valuation.

This positive turn in valuation provides relief for Swiggy amidst a series of markdowns by global investment firms for Indian startups. The reversal can be attributed to improved financial metrics and a more favourable macroeconomic environment.

Swiggy CEO Sriharsha Majety claimed last year that the company’s food delivery business achieved profitability (excluding ESOP costs) in March 2023. However, Swiggy reported a consolidated loss of INR 3,629 crore in FY22 on revenue of INR 5,704.9 crore.

Swiggy’s listed rival Zomato surpassed a market capitalization of INR 1 lakh crore in November, thanks to its positive financial turnaround. In the September quarter of the financial year 2023-24 (FY24), Zomato recorded its second consecutive profitable quarter, witnessing a substantial surge in profit after tax to INR 36 crore.

The online food delivery market volume is estimated to reach $81.9 billion by 2028, growing at a CAGR of 19.7% from 2023 to 2028.

Meanwhile, Swiggy is gearing up for its stock market debut, which is anticipated in mid-2024. It is poised to become the most substantial IPO by an internet company this year, with an impressive issue size of $1 billion. The article on Inc42 Media details Invesco’s second consecutive valuation increase for IPO-bound Swiggy to $8.3 billion.