Invesco, a US-based investor, has raised the valuation of Swiggy, a food and grocery delivery company, to $12.7 billion, according to filings submitted to the US Securities and Exchange Commission. This represents an 18% increase from Swiggy’s previous valuation when it last secured funding in 2022.
In January 2022, Invesco led a $700 million funding round that valued Swiggy at $10.7 billion. This increase in Swiggy’s valuation by its investors contrasts with the recent fair value markdowns of stakes in several other Indian internet companies, including Ola Cabs, Byju’s, and Meesho, by investors like Vanguard, BlackRock, and Fidelity.
Last month, Snackfax reported that Baron Capital had increased the company’s valuation to $12.1 billion. As of January 31 this year, Invesco, which is expecting Swiggy to soon file draft papers for its $1 billion initial public offering (IPO), has also valued Swiggy at this amount. This marks the fourth consecutive valuation increase by Invesco for Swiggy.
Continue Exploring: Baron Capital elevates Swiggy’s valuation to $12.1 Billion, marking 13% increase from previous fundraise
Crossover funds, which invest in both publicly traded and privately held companies, regularly reassess the valuation of their portfolio companies. The fair value is determined based on various factors, including the stock market performance of similar companies.
Swiggy declined to comment on the development.
From October 31 to January 31, the share price of Zomato, Swiggy’s primary competitor in the food delivery, quick commerce, and dining-out sectors, rose by 33%.
Presently, Zomato’s shares are soaring to an all-time peak, edging close to the INR 200 threshold, with its market capitalization surpassing $20 billion.
According to stock market analysts, the increase in Zomato’s market valuation is mostly due to the growth of its rapid commerce venture, Blinkit, which competes with Swiggy’s Instamart, as well as Zepto & BigBasket.
Swiggy experienced a remarkable 45% year-on-year surge in operating revenue for the fiscal year that ended in March 2023, reaching INR 8,265 crore. Despite this, its net loss widened by 15% to INR 4,179 crore during the same period.
Continue Exploring: IPO-bound Swiggy appoints Titan’s Suparna Mitra as independent director
According to a January report by Bernstein, Zomato commanded a 54% market share in terms of gross merchandise value (GMV) in the food-delivery segment, with Swiggy trailing at 46%.
According to Reuters, referencing an internal company document, Swiggy reported a loss of approximately INR 1,730 crore for the nine-month period ending in December 2023. Throughout this timeframe, the company generated revenues of approximately INR 8,490 crore.
In the same period, Zomato’s consolidated operating revenue amounted to INR 8,552 crore.
On April 8, Snackfax reported that Swiggy, in preparation for its IPO, has transitioned into a public limited company. Furthermore, on February 27, Swiggy altered its registered name from Bundl Technologies Pvt Ltd to Swiggy Pvt Ltd with the aim of enhancing the association and recognition of the company’s corporate identity with its core brand, ‘Swiggy’.
Continue Exploring: Swiggy transitions to publicly traded company ahead of $1 Billion IPO