US-based investment firm Invesco has slashed foodtech giant Swiggy’s valuation to about $5.5 billion, according to a recent filing. Just a month ago, Invesco valued the company at about $8 billion in October.
This development comes amid reports of the food delivery giant taking measures to cut costs, dispose of the non-viable business verticals and aim for profitability. The company is reportedly undertaking these activities to make a debut on the stock market soon.
The company recently pulled the plug on its premium grocery delivery pilot program, Handpicked, which was functional in several parts of Bengaluru.
“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 spokesperson of the company said.
In another instance, as Business Today reported a few days ago, the company has started charging a Rs 2 platform fee on food orders being delivered in cities such as Bengaluru, Hyderabad, and Chennai. This charge is being levied only on the food orders and not on orders made on Swiggy’s quick commerce vertical, Instamart.