IPO-bound Swiggy's valuation up by 13% at $12.1 bn from $10.7 bn: Report

US-based asset manager Baron Capital Group has reportedly increased the fair value of IPO-bound food-delivery app Swiggy, following which its valuation went up by 13% to $12.16 billion from its valuation of $10.7 billion in the last fundraise in 2022. 

The valuation update was disclosed in the US Securities and Exchange Commission filings. The US-based asset manager had previously invested in Swiggy during a $700 million funding round in January 2022. As of December 31, the asset manager’s fund held a stake worth $87.2 million in Swiggy’s parent company Bundl Technologies, up 17% from $74.4 million a quarter prior, the Economic Times reported. The stake was worth $76.8 million at the time of acquisition.

In 2022, Swiggy raised $700 million in its Series K round led by Invesco. The round doubled its valuation to $10.7 billion. In July-September quarter in 2023, Invesco increased Swiggy’s valuation to $7.85 billion. 

In a separate filing, Baron Capital stated that Swiggy commands roughly 45% market share in the Indian food delivery sector and is “well positioned" to benefit from structural growth in online food delivery in India.

The asset manager said: “We believe India’s food delivery industry is still in its infancy and will continue to scale over the next several years thanks to a growing middle class, rising disposable income, higher smartphone penetration, and structural shifts in consumer preferences driven by a tech-savvy, younger population. The industry has also become a duopoly between Swiggy and Zomato, which bodes well for the future profitability and scale of the company.”

Swiggy is eyeing to list on the bourses around mid-2024. Its public issue is expected to be of $1 Bbillion (Rs 8,300 crore, which is already one of the biggest IPO openings for a new-age tech company.

Swiggy, just like its rival Zomato, is diversifying its services. Backed by Prosus Ventures, Accel, and SoftBank, Swiggy is venturing into consumer electronics and other sectors to capture more of the e-commerce market with 20-minute delivery for all orders.

In the last fiscal, Swiggy’s net loss increased by 15% year-on-year to Rs 4,179.3 crore, while its operating revenue jumped over 40% to Rs 8,264.4 crore.