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According to the media reports, Invesco has slashed Swiggy's valuation to $5.5 billion from $8.2 billion. This is the second time that Invesco's has markdown for Swiggy in less than a year. Earlier in April, it had reduced the company's valuation to $8.2 billion from $10.7 billion.
In total, Swiggy's valuation has been lowered by 48.6% from January last year, putting it behind its listed peer, Zomato.
Meanwhile, the emergence of the Indian government's ONDC (Open Network for Digital Commerce) platform, enabling restaurants to sell food directly to customers without intermediary services, has posed a significant challenge to private competitors like Swiggy and Zomato.
Zomato's stocks have recently suffered due to the growing threat to its market share from ONDC. The government's objective behind ONDC is to counter the dominance of a few large e-commerce and food delivery platforms such as Amazon, Flipkart, Swiggy, and Zomato.
Zomato connects customers, restaurant partners and delivery partners. Customers use Zomato to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. The company also operates a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners.
The food aggregator's consolidated net loss for Q3FY23 widened to Rs 347 crore against Rs 63 crore registered in the same quarter last year. Revenue from operations zoomed 75% to Rs 1,948 crore year-on-year (YoY) as against Rs 1,112 crore in the corresponding quarter last year.
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