According to a recent filing, US-based investment firm Invesco has slashed foodtech giant Swiggy’s valuation to about $5.5 billion. Invesco valued the company at around $8 billion in October, just a month ago.
This development occurs as reports circulate that the world’s largest food delivery company is taking action to cut costs, eliminate unprofitable business segments, and drive profitability. According to reports, the company is taking these actions in preparation for a forthcoming stock market debut.
The company recently ended Handpicked, a premium grocery delivery pilot program in select Bengaluru areas.
“At Swiggy we’re continuously experimenting with new propositions in line with our vision to enable unparalleled convenience to consumers. Handpicked was being piloted in a few zones in Bengaluru and we have had several positive learnings from it,” the company spokesperson said.
According to Swiggy, charging the fees helps them “operate and improve our platform and enhance app features to deliver a seamless app experience.”
In January, the company closed its meat marketplace vertical and laid off 380 employees as part of a company-wide restructuring effort.
Swiggy achieved a ‘decacorn’ status last year after it raised about $700 million from Invesco. Decacorns are privately-held firms whose valuation exceeds $10 billion.