3rd June 2024- US-based asset manager Baron Capital has increased the fair value of its investment in Swiggy, elevating the food and grocery delivery platform’s valuation to $15.1 billion as of March 31, 2024. This marks a 25% surge from the $12.1 billion valuation attributed by the firm on December 31, 2023.
Baron Capital’s quarterly report reveals a significant rise in the fair value of its stake in Swiggy, reaching $109 million, up nearly 42% from its initial investment of $76.7 million.
The valuation boost coincides with Swiggy’s preparations for its much-anticipated initial public offering (IPO). The startup has initiated the IPO process and filed its IPO papers through the confidential pre-filing route with the Securities and Exchange Board of India (SEBI). Swiggy’s IPO offer comprises fresh shares worth INR 3,750.1 crore and an offer-for-sale component valued at INR 6,664 crore.
Established in 2014, Swiggy has expanded its services beyond food delivery to include Swiggy Instamart and Swiggy Genie. Despite reporting a loss of $207 million (INR 1,730 crore) in the first nine months of FY24, Swiggy recorded robust revenue figures, amounting to approximately INR 8,505 crore during April-December 2023.
The surge in Swiggy’s valuation comes amidst the success of its listed competitor, Zomato, whose share price has soared in recent times. Zomato reported profits in multiple quarters of FY24, signaling promising growth prospects for the food delivery sector in India.
Conclusion
Swiggy’s escalating valuation and impending IPO underscore investor confidence in the company’s potential for growth and market dominance in the evolving food delivery landscape.
Source:Link
