US-based asset manager Invesco has raised the valuation of foodtech giant Swiggy to $13.3 billion,,͏͏ reflecting͏͏ a͏͏ nearly͏͏ 25%͏͏ jump͏͏ from͏͏ the͏͏ investor’s͏͏ last͏͏ fair͏͏ value͏͏ assessment.
Invesco’s͏͏ Previous͏͏ Investment͏͏ in͏͏ Swiggy:
Invesco͏͏ had͏͏ invested͏͏ in͏͏ Swiggy’s͏͏ $700͏͏ million͏͏ funding͏͏ round͏͏ in͏͏ January͏͏ last͏͏ year,͏͏ which͏͏ valued͏͏ the͏͏ company͏͏ at͏͏ $10.7͏͏ billion.͏͏ During͏͏ this͏͏ round,͏͏ the͏͏ investor͏͏ allocated͏͏ $190.47͏͏ million͏͏ for͏͏ a͏͏ stake͏͏ in͏͏ the͏͏ IPO-bound͏͏ firm.
As͏͏ of͏͏ July͏͏ 2024,͏͏ Invesco’s͏͏ Developing͏͏ Markets͏͏ Fund͏͏ estimates͏͏ the͏͏ value͏͏ of͏͏ its͏͏ stake͏͏ in͏͏ the͏͏ foodtech͏͏ decacorn͏͏ at͏͏ approximately͏͏ $219.25͏͏ million.͏͏ The͏͏ asset͏͏ manager͏͏ owns͏͏ 28,844͏͏ shares͏͏ of͏͏ Swiggy,͏͏ as͏͏ reported͏͏ by͏͏ TechCrunch.
This͏͏ isn’t͏͏ the͏͏ first͏͏ instance͏͏ of͏͏ Invesco͏͏ adjusting͏͏ its͏͏ valuation͏͏ of͏͏ Swiggy.͏͏ In͏͏ July͏͏ last͏͏ year,͏͏ the͏͏ asset͏͏ manager͏͏ lowered͏͏ the͏͏ valuation͏͏ of͏͏ the͏͏ Bengaluru-based͏͏ startup͏͏ to͏͏ $5.5͏͏ billion͏͏ amid͏͏ a͏͏ downturn͏͏ in͏͏ the͏͏ food͏͏ delivery͏͏ market.
Continue͏͏ Exploring:͏͏ Invesco marks͏͏ down͏͏ valuations͏͏ of͏͏ IPO-bound͏͏ Swiggy and͏͏ Pine͏͏ Labs
At͏͏ the͏͏ end͏͏ of͏͏ April͏͏ this͏͏ year,͏͏ Swiggy͏͏ was͏͏ valued͏͏ at͏͏ approximately͏͏ $12.3͏͏ billion.
Swiggy’s͏͏ IPO͏͏ Plans͏͏ and͏͏ Target͏͏ Valuation:
Invesco’s͏͏ increase͏͏ in͏͏ Swiggy’s͏͏ valuation͏͏ coincides͏͏ with͏͏ the͏͏ foodtech͏͏ giant’s͏͏ plans͏͏ to͏͏ go͏͏ public.͏͏ Earlier͏͏ this͏͏ month,͏͏ Swiggy͏͏ submitted͏͏ an͏͏ updated͏͏ draft͏͏ red͏͏ herring͏͏ prospectus͏͏ to͏͏ market͏͏ regulator͏͏ SEBI,͏͏ seeking͏͏ to͏͏ raise͏͏ over͏͏ INR͏͏ 3,750͏͏ crore͏͏ through͏͏ its͏͏ initial͏͏ public͏͏ offering͏͏ (IPO).
Swiggy͏͏ is͏͏ targeting͏͏ a͏͏ valuation͏͏ of͏͏ $15͏͏ billion͏͏ for͏͏ its͏͏ IPO.͏͏ In͏͏ contrast,͏͏ its͏͏ main͏͏ competitor͏͏ Zomato͏͏ was͏͏ valued͏͏ at͏͏ around͏͏ $7͏͏ billion͏͏ during͏͏ its͏͏ IPO͏͏ in͏͏ 2021͏͏ and͏͏ debuted͏͏ with͏͏ a͏͏ valuation͏͏ of͏͏ $12͏͏ billion.
Zomato’s͏͏ market͏͏ cap͏͏ has͏͏ significantly͏͏ increased͏͏ and͏͏ currently͏͏ stands͏͏ at͏͏ INR͏͏ 2.42͏͏ lakh͏͏ crore͏͏ (approximately͏͏ $28.9͏͏ billion).
Recently,͏͏ brokerage͏͏ firm͏͏ Elara͏͏ Capital͏͏ noted͏͏ that͏͏ Swiggy͏͏ is͏͏ expected͏͏ to͏͏ command͏͏ a͏͏ lower͏͏ valuation͏͏ in͏͏ the͏͏ public͏͏ market͏͏ compared͏͏ to͏͏ Zomato,͏͏ as͏͏ it͏͏ continues͏͏ to͏͏ lag͏͏ behind͏͏ the͏͏ Deepinder͏͏ Goyal-led͏͏ startup͏͏ in͏͏ several͏͏ key͏͏ metrics,͏͏ including͏͏ revenue,͏͏ gross͏͏ order͏͏ volume,͏͏ and͏͏ order͏͏ count.
Investor͏͏ Interest:
However,͏͏ investors͏͏ have͏͏ been͏͏ lining͏͏ up͏͏ to͏͏ acquire͏͏ unlisted͏͏ shares͏͏ of͏͏ Swiggy͏͏ ahead͏͏ of͏͏ its͏͏ highly͏͏ anticipated͏͏ IPO,͏͏ reflecting͏͏ a͏͏ growing͏͏ demand͏͏ for͏͏ the͏͏ stock͏͏ amid͏͏ a͏͏ bull͏͏ run͏͏ in͏͏ the͏͏ Indian͏͏ equities͏͏ market.
Renowned͏͏ Indian͏͏ cricketers͏͏ Rahul͏͏ Dravid͏͏ and͏͏ Zaheer͏͏ Khan,͏͏ along͏͏ with͏͏ celebrities͏͏ such͏͏ as͏͏ Madhuri͏͏ Dixit͏͏ and͏͏ Amitabh͏͏ Bachchan,͏͏ have͏͏ recently͏͏ acquired͏͏ a͏͏ stake͏͏ in͏͏ Swiggy.
Continue͏͏ Exploring:͏͏ Swiggy attracts͏͏ celebrity͏͏ investors:͏͏ Rahul͏͏ Dravid,͏͏ Karan͏͏ Johar͏͏ &͏͏ others͏͏ invest͏͏ in͏͏ pre-IPO͏͏ round
Financial͏͏ Performance:
According͏͏ to͏͏ its͏͏ DRHP,͏͏ Swiggy’s͏͏ consolidated͏͏ net͏͏ loss͏͏ increased͏͏ by͏͏ over͏͏ 8%͏͏ to͏͏ INR͏͏ 611͏͏ crore͏͏ in͏͏ the͏͏ June͏͏ quarter͏͏ of͏͏ the͏͏ financial͏͏ year͏͏ 2024-25͏͏ (Q1͏͏ FY25),͏͏ up͏͏ from͏͏ INR͏͏ 564.08͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ year,͏͏ due͏͏ to͏͏ a͏͏ rise͏͏ in͏͏ operating͏͏ costs.
However,͏͏ Swiggy’s͏͏ revenue͏͏ from͏͏ operations͏͏ surged͏͏ 35%͏͏ to͏͏ INR͏͏ 3,222.2͏͏ crore͏͏ during͏͏ the͏͏ quarter͏͏ under͏͏ review,͏͏ up͏͏ from͏͏ INR͏͏ 2,389.8͏͏ crore,͏͏ driven͏͏ by͏͏ robust͏͏ growth͏͏ in͏͏ its͏͏ food͏͏ delivery͏͏ and͏͏ quick͏͏ commerce͏͏ sectors.
