Atlanta-based investment management firm Invesco has marked down the valuation of Indian food delivery giant Swiggy to $5.5 billion, according to a recent filing. This represents a 48.6% decrease from the $10.7 billion valuation Invesco had attributed to the startup during a funding round it led last year. It is also the second time Invesco has revised Swiggy’s valuation in recent quarters. In October 2022, the company reduced the valuation of its holding to $8 billion.

Swiggy’s valuation now puts it on par with its primary publicly-traded competitor, Zomato, which currently has a market capitalization of approximately $5.45 billion. Zomato’s market cap had previously exceeded $13 billion.

The recent markdowns in valuations highlight the impact of waning global market conditions on Indian startups. Last year, there was a decline in funding activity within the Indian startup ecosystem, but the valuations of many larger startups remained unchanged as they either raised capital via convertible notes or opted not to raise funds at all.

However, Invesco’s valuation adjustment does not necessarily mirror the opinions of other investors, and in some cases, even the startups themselves. Invesco has stated that it considers various factors, including the performance of “market participants,” when determining the valuation of its portfolio startups. It is possible that the company’s perception of Swiggy’s valuation may have improved in the following months, as market conditions evolved.

Other major investors have also adjusted their valuations of Indian startups recently. BlackRock cut the valuation of Byju’s, India’s most valuable startup at $22 billion, by nearly half to $11.5 billion, while Fidelity has largely kept its holdings in Indian startups Meesho and Pine Labs unchanged, according to recent filings.

The markdowns in valuations are a reminder that startup valuations are not set in stone and are subject to market conditions and investor perceptions. Despite the recent adjustments, Swiggy remains a major player in India’s competitive food delivery market, and the company’s performance will be closely watched by investors and industry observers in the coming months.

Atlanta-based investment management firm Invesco has marked down the valuation of Indian food delivery giant Swiggy to $5.5 billion, according to a recent filing. This represents a 48.6% decrease from the $10.7 billion valuation Invesco had attributed to the startup during a funding round it led last year. It is also the second time Invesco has revised Swiggy’s valuation in recent quarters. In October 2022, the company reduced the valuation of its holding to $8 billion.

Swiggy’s valuation now puts it on par with its primary publicly-traded competitor, Zomato, which currently has a market capitalization of approximately $5.45 billion. Zomato’s market cap had previously exceeded $13 billion.

The recent markdowns in valuations highlight the impact of waning global market conditions on Indian startups. Last year, there was a decline in funding activity within the Indian startup ecosystem, but the valuations of many larger startups remained unchanged as they either raised capital via convertible notes or opted not to raise funds at all.

However, Invesco’s valuation adjustment does not necessarily mirror the opinions of other investors, and in some cases, even the startups themselves. Invesco has stated that it considers various factors, including the performance of “market participants,” when determining the valuation of its portfolio startups. It is possible that the company’s perception of Swiggy’s valuation may have improved in the following months, as market conditions evolved.

Other major investors have also adjusted their valuations of Indian startups recently. BlackRock cut the valuation of Byju’s, India’s most valuable startup at $22 billion, by nearly half to $11.5 billion, while Fidelity has largely kept its holdings in Indian startups Meesho and Pine Labs unchanged, according to recent filings.

The markdowns in valuations are a reminder that startup valuations are not set in stone and are subject to market conditions and investor perceptions. Despite the recent adjustments, Swiggy remains a major player in India’s competitive food delivery market, and the company’s performance will be closely watched by investors and industry observers in the coming months.