American investor Baron Capital has again cut down Swiggy’s valuation by 10 per cent in March 2023, in addition to the 34 per cent cut it executed in December 2022 filings.

This valuation cut has dropped Swiggy’s valuation to $6.5 billion in Baron Capital’s books. At its peak, Swiggy was valued at $10.7 billion. Similarly, Invesco has cut the food delivery major’s valuation to $5.5 billion in January 2023, from its last valuation of $10.7 billion in January 2022.

As the funding winter intensifies and macroeconomic conditions worsen, private investors of multiple start-up unicorns like Swiggy have slashed their valuations by 30-50 per cent. Experts believe that unicorns are very close to an IPO and so quite comparable to publicly listed companies. Now, if the publicly listed comparable company is trading much lower, then the private company’s valuation is also getting slashed.

Other instances

In other instances of unicorn valuation cuts, Janus Henderson has also slashed PharmEasy’s valuation by 50 per cent to $2.8 billion from $5.6 billion. Further, US-based Neuberger Berman slashed the valuation of API Holdings (Pharmeasy) by 22 per cent to $4.39 billion. Neuberger also slashed Pine Labs’ valuation to $3.14 billion from its last valuation of $5 billion.

Ola’s American investor Vanguard Group slashed the company’s valuation by 35 per cent to $4.8 billion, compared to its peak valuation of $7.3 billion. Prosus, too, pegged BJYU’s valuation at $6 billion in November 2022. BYJU’s raised its last funding round at a valuation of $22 billion. In late 2022, Oyo’s valuation was also slashed to $2.7 billion from $10 billion by Japanese conglomerate, SoftBank.

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