Some giant Indian startups are taking a haircut in their valuations, at least in the eyes of their investors, as some backers are adjusting their estimates in a global economy.
According to documents seen by TechCrunch, BlackRock has 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 largely held back their final valuations as they raised capital on convertible notes (and delayed valuations) or raised no capital at all. Unchanged.
Masayoshi Son, founder and CEO of SoftBank Group, cited this trend last year when he warned that funding for startups could be prolonged because some unicorns were unwilling to accept lower prices in new funding discussions.
However, it is important to note that investors view their existing portfolio of startups differently, and one proponent’s valuation adjustment may not necessarily represent the views of other investors.