Baron Capital Group has raised the valuation of food-delivery platform Swiggy to $12.1 billion on Friday, March 8, 2024.
This marks a 13 per cent increase from its previous valuation of $10.7 billion in 2022, reported The Economic Times.
The US-based asset manager had previously invested in Swiggy during a $700 million funding round in January 2022.
This latest valuation, disclosed in filings with the US Securities and Exchange Commission, reflects the value of Swiggy as of December 31, 2023.
The fund managed by Baron Capital held a stake worth $87.2 million in Swiggy’s parent company as of December 31, up 17 per cent from the previous quarter’s $74.4 million. Initially, the stake was valued at $76.8 million.
Investment firms like Baron Capital periodically reassess the value of their investments in privately held companies like Swiggy based on various factors, including events within the company and the performance of comparable peers on the stock market.
Baron Capital Group also holds stakes worth over $11 million in Swiggy’s competitor, Zomato. Zomato’s market capitalisation stood at over $17 billion on Friday.
Invesco, another investor, had previously raised Swiggy’s valuation to $9.5 billion as of October 31, 2023.
Swiggy is gearing up for a $1 billion initial public offering (IPO), which is expected to include an offer-for-sale component of at least $600 million, as per media reports. This component will allow existing investors to sell some of their stakes in the company.
Prosus, Swiggy’s largest shareholder, reported a 35 per cent reduction in the company’s losses for the half-year ended September 30, narrowing down to $208 million.
Both Swiggy and Zomato are eyeing dominance in the food-delivery market, with analysts pointing to their quick-commerce verticals as the next growth frontier. Zomato owns Blinkit, while Swiggy operates in this space through its Instamart vertical.
Source Agencies
