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Some of India’s biggest startups are adjusting their valuations—at least in the eyes of their investors—with some fans.
According to records seen by TechCrunch, BlackRock nearly halved the value of Baiju, an Indian startup valued at $22 billion, to $11.5 billion. Indian news outlet The Arch first reported the downgrade.
India’s most valuable food delivery startup Swiggy, which started at $10.7 billion, has been valued at around $8 billion by Invesco, a US fund spotted by TechCrush.
Baiju raised $22 billion in capital last year and has raised additional financing in recent quarters as a cap on previous valuations, people familiar with the matter said. In its 2022 annual report to shareholders, BlackRock announced a valuation adjustment on the Indian edtech giant.
Swiggy raised its valuation to $10.7 billion in January 2022 in a round led by its own Invesco. In late October, Atlanta-headquartered Swiggy cut the value of its holdings, valuing the company at about $8 billion.
The valuation cut adds a new dimension to the impact of the deteriorating market conditions on Indian startups. Funding activity in India’s startup ecosystem has slowed over the past year, but many of the biggest startups have either raised capital through convertible notes or haven’t raised capital, so their ultimate valuations have remained largely unchallenged.
But it’s important to note that investors value the equity of their existing portfolio of startups differently, and one investor’s valuation, however interesting, doesn’t necessarily represent the views of other backers — and sometimes even the startups themselves.
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