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Valuation of Indian startups Byjus, Swiggy slashed by American investors

Valuation of Indian startups Byjus, Swiggy slashed by American investors
Byjus valaution has been reduced to half, while Swiggy’s is reduced by almost a quarter.

Some U.S.-based investment firms have reportedly slashed the valuation of Indian ed-tech startup Byjus and food delivery startup Swiggy. The move comes at the heels of a funding winter faced by Indian startups and as the global economy is headed towards a recession this year.

Talking about Byjus, BlackRock reduced the valuation of India’s most valuable startup to $11.15 billion, according to a report by The Arc. This is half of the $22 billion valuation at which the company last raised funds, it added.

In July last year, reports highlighted that the company is struggling to close the $800 million worth of funding round, at a $22 billion valuation, due to “macroeconomic changes.” At that time, Byjus was yet to receive $250 million from Sumeru Ventures and Oxshott. The company’s co-founder Raveendran also backed the funding round and invested $400 million into the startup.

Meanwhile, Swiggy’s valuation was trimmed to about $8 billion by Invesco in the third quarter of 2022, according to a report by TechCrunch that cited regulatory filings. This is down almost 25% from $10.7 billion in the previous quarter. The markdown happened after a $700 million funding round led by Invesco itself.

Speaking of the valuation of a startup, it is the value of the business considering market forces and the sector of the company. In simple terms, it is the worth of the company.

Meanwhile, Byjus and Swiggy both have not given any official comments yet. However, the valuation markdown is coming at a time when market conditions are volatile and global cues are weak, while the startup’s funding winter has been stretching since last year.

The domino effect of the easing pace of funding and slowing consumer demand due to cautiousness around recession and high inflation has pushed several Indian startups to even restructure and initiate some cost-cutting measures like saying ‘goodbye’ to employees.

Late last month, Unacademy, a leading Indian ed-tech startup, announced that it will lay off 12% of its workforce, or over 350 roles. This decision comes just over four months after the company eliminated about 350 positions in November.

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