Invesco Inc., a U.S.-based investor, has once again increased the valuation of its investment in Bundl Technologies Pvt., the parent company of India’s prominent food delivery platform Swiggy. This comes as the second consecutive upward revision, following two markdowns in the past year.
According to a Securities and Exchange Commission filing by one of Invesco’s investment funds, the valuation of its approximately 2% stake in Swiggy reached $147.6 million at the end of October 2023. This marks a notable ascent from the $135.6 million valuation reported at the end of July.
The latest valuation positions the Bengaluru-based food delivery giant at an estimated fair value of $8.3 billion, showcasing positive momentum from its previous valuation of $7.85 billion. However, it’s essential to note that this figure still trails behind Swiggy’s peak valuation of $10.7 billion, achieved during a $700 million funding round in January 2022.
In comparison, its listed rival, Zomato Ltd., is currently trading at a market capitalization of Rs 1.11 lakh crore, equivalent to approximately $13.4 billion, as of 12 p.m. on Thursday.
Despite the challenging market dynamics, Swiggy’s food delivery business demonstrated profitability, as highlighted by CEO Sriharsha Majety in May. The company achieved this milestone by factoring in all corporate costs, excluding employee stock option costs. Majety stated in a blog post, “Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than nine years since its inception.”
However, as of FY22, Swiggy reported a loss of Rs 3,628.9 crore with revenue reaching about Rs 5,704.9 crore. According to long-time backer Prosus, Swiggy’s loss for the calendar year 2022 amounted to nearly $556 million or approximately Rs 4,630 crore, constituting a substantial portion of FY23.
