Invesco lowered Swiggy’s valuation to $5.5 billion.

Invesco, which led the previous round of Swiggy, lowered its valuation of the Indian food delivery giant to $5.5 billion, the filing said.

This revised price is As of Jan. 31, 2023, the Atlanta-headquartered company’s funding represents a 48.6 percent decline from Invesco’s previous valuation of $10.7 billion last year.

This is the second time in recent quarters that Invesco has significantly changed Swiggy’s estimate. In October, Invesco lowered its stake in Swiggy to $8 billion.

This revised valuation now aligns Swiggy, which counts Process Ventures, Accel and SoftBank among its backers, with its main publicly traded rival Zomato, which at one time had a market capitalization of more than $13 billion. However, Zomato’s market cap saw a decline, closing Monday’s trading session at around $5.45 billion.

It’s the season of review marks for startups worldwide. BlackRock recently halved the value of Baiju, India’s most expensive startup, from $22 billion to $11.5 billion. Fidelity, another giant US investor, has largely kept its holdings in Indian startups Meesho and Pine Labs unchanged, according to an analysis of recent filings.

The latest valuation reductions bring a fresh perspective to the impact of declining global market conditions on Indian startups. The past year has seen a slowdown in funding activity in the Indian startup ecosystem, but the valuation of many large startups has remained unchanged as capital has either come in floating notes (thereby delaying value discovery) or opted not to raise funds.

Masayoshi Son, founder and CEO of SoftBank Group, warned last year that funding for startups could continue as some unicorn companies refuse to accept lower prices during new funding negotiations.

However, it is important to recognize that investors evaluate the equity of their existing startup portfolios in different ways. Therefore, one investor’s assessment, no matter how significant, does not necessarily reflect the opinions of other investors, and in some cases even the startups themselves.

Invesco stated that the performance of “market participants” is one of the factors considered when determining the valuation of portfolio startups. Notably, when Swiggy’s valuation was revised in January, Zomato’s market cap was significantly lower than its current level. Therefore, it is plausible that Invesco’s perception of Swiggy’s valuation may improve in the coming months as market conditions improve.