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Invesco has slashed food delivery firm’s Swiggy valuation to $5.5 billion as per media reports.

This would be the second such move this year, as per a TechCrunch report. Last month, the US-based investment management firm cut the valuation of its holding in Swiggy to $8 billion from $10.7 billion, as per its regulatory findings.

YourStory was unable to independently verify the report. Queries have been sent to Swiggy and this story will be updated with its response.

The latest valuation is 48.6% lower than in January last year when Swiggy turned decacorn post raising $700 million in a funding round. Investors including Invesco, Baron Capital Group, Sumeru Venture, IIFL AMC’s late stake tech fund, Kotak, Qatar Investment Authority, and others participated in the round that made Swiggy one of India’s most valuable startups.

The drop in valuation mirrors a cautious sentiment among investors that are re-evaluating the worth of their investments amid tough macroeconomic conditions. Volatility in rival Zomato’s stock price has given rise to apprehensions about its business, notably in light of the economic downturn and its associated decline in consumer confidence.

BlackRock—one of BYJU’S top investors—also pulled down the valuation of its holding in the edtech firm by half to nearly $11.5 billion recently.

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In FY22, Swiggy reported a widening in loss, even as its revenue rose two-fold. The company recorded a loss of Rs 3,629 crore in FY22 versus a loss of Rs 1,617 crore last year. Expenses shot up to Rs 9,574 crore from Rs 4,139 crore last fiscal, led by an increase in the cost of product procurement and advertising expenses.

The company earned a revenue of Rs 5,705 crore in FY22, up from Rs 2,457 crore in FY21.

Prosus—one of Swiggy’s biggest investors, said last year that the gross merchandise value (GMV) of Swiggy’s food delivery arm grew 40% in the January-July period this year.