New Delhi, Oct 17 (IANS): In some cheers for Swiggy that is facing tough competition from Zomato, US-based investment company Invesco has increased the food delivery platform’s valuation to about $7.85 billion, the media reported on Tuesday.

Earlier in May, Invesco slashed Swiggy's valuation in its holding to about $5.5 billion.

According to a newly-published disclosure, Invesco said that "it considers the valuation of similar public companies as a factor when reassessing the value of its private investments", reports TechCrunch.

Since Zomato stock has spiked by 33 per cent since the end of July, the current $7.85 billion valuation for privately-held Swiggy may be conservative, the report mentioned.

Swiggy’s volume grew 7 per cent in July and 6 per cent in August (month-on-month), beating Zomato, according to a latest UBS report.

Swiggy is backed by SoftBank, Prosus, and Accel, among others.

In October last year, Invesco had reduced the valuation of its holding in Swiggy to about $8 billion.

Swiggy had reached a $10.7 billion valuation in a round led by Invesco in January 2022. The food delivery platform has been preparing to launch its initial public offering (IPO).

In May, Swiggy CEO Sriharsha Majety said their food delivery business has turned profitable (as of March 2023), after factoring in all corporate costs, excluding employee stock option costs. Swiggy experienced a significant increase in losses during the financial year 2023 (FY23), said tech investor Prosus in its annual report.

Swiggy's losses for the entire FY23 amounted to approximately $545 million, representing an 80 per cent increase compared to around $300 million in FY22.