IPO-Bound Swiggy Gets Another Valuation Markup By Baron Capital
In April, Invesco Inc. had also raised the valuation of its investment in the food delivery major for at least the third time to around $12.7 billion.
US-based investor Baron Capital has hiked the valuation of its holding in IPO-bound Swiggy to $15.1 billion, according to filings made with the American markets regulator, the Securities and Exchange Commission.
The asset manager estimated Swiggy's valuation at around $12.1 billion in December last year. As of March 31, it has ascribed the Bengaluru-based food delivery platform's valuation at $15.1 billion, a 25% jump.
In April, Invesco Inc. also raised the valuation of its investment in Swiggy for at least the third time to around $12.7 billion.
The markups gather steam as Swiggy has reportedly confidentially filed for an initial public offering with SEBI. This valuation hike also gets it closer to listed rival Zomato Ltd., which is trading at a market cap of Rs 1.54 lakh crore or $18.5 billion, as of 3 p.m. on Monday.
Swiggy's revenue from its top two businesses—ffood delivery and quick-commerce unit Instamart—increased by 35% in the last financial year, alongside a meaningful reduction in operating loss. The company's revenue from the two business segments has gone up from Rs 5,800 crore in fiscal 2023 to Rs 7,800 crore in fiscal 2024, according to people familiar with the matter who spoke on the condition of anonymity.
Operating losses from the two segments have also dipped from Rs 2,500 crore to Rs 1,500 crore during the same period, pointing to increased efficiencies.
In April, shareholders of the food delivery major gave their nod for a potential Rs 10,414-crore IPO, according to filings made with the Registrar of Companies, accessed via TheKredible.
The Instamart operator plans to raise up to Rs 6,664 crore via the offer-for-sale route and Rs 3,750 crore via a fresh issue of shares. Swiggy can also raise up to Rs 750 crore in a pre-IPO anchor round.
