Swiggy's Valuation Soars to $12.7 Billion Ahead of IPO

10 Apr 2024 , 10:56 AM

In the lead-up to its anticipated initial public offering (IPO), Swiggy’s valuation has increased by 19% to $12.7 billion thanks to an asset management company (AMC) based in the US, according to regulatory documents. In January 2022, the food delivery business raised $700 million at a valuation of $10.7 billion, with the investor leading the round.

For the third time in a row, Invesco has increased Swiggy’s valuation. After several reductions, it had last raised Swiggy’s valuation to $8.3 billion as of October 2023. Subsequently, Swiggy’s fair value was estimated by investor Baron Capital to be $12.2 billion as of March 2024, giving the soon-to-be-IPO startup even more momentum.

Now that markups have been applied, Swiggy’s worth is approaching that of its competitor Zomato. As of 2:25 PM on April 9, the share price of the BSE-listed company had shot up to a lifetime high of Rs 194.3 per share. Due in significant part to its quick-commerce business, Zomato has demonstrated strong performance, resulting in a market capitalization of over $20 billion.

When assessing private market companies, investors generally take public market valuations into account, and Swiggy is no exception.

These changes occur as Swiggy gets ready for its massive $1 billion first public offering. The first nine months of Swiggy’s fiscal year 2023–2024 had losses of $207 million, according to Reuters last month, which cited internal papers.

According to the paper, the loss was incurred on $1.02 billion in revenue during that same period, as opposed to $1.05 billion in revenue for the fiscal year 2022–2023.

The CEO of the Swiggy group, Sriharsha Majety, had previously announced that IPO planning is under way. In order to probably list later this year, Swiggy is going through all the motions, including transforming its businesses (Bundl Technologies and Swiggy Ltd.) into public limited corporations and adding investment bankers to board positions.

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