IPO-bound Swiggy's valuation raised to $8.3 billion by US-based Invesco: Report

US-based asset management company Invesco, which owns around 2 per cent stake in Swiggy, has raised the valuation of the initial public offering (IPO)-bound food tech major to $8.3 billion. As per the regulatory filings by the US-based AMC, at the end of October, Invesco's 28,844 shares in the food delivery app amounted to $147.6 million; this, in turn, translates to a valuation of $8.3 billion, a report on Thursday said.

This is for the second consecutive time that Invesco has raised Swiggy’s valuation. In October 2023, Invesco had marked up Swiggy’s valuation by 42 per cent to $7.85 billion. Although the 2023 valuation came after two back-to-back cuts, Moneycontrol reported. 

In April 2023, Invesco cut Swiggy’s valuation to $8 billion, down from $10.7 billion, after tech stocks across the world slumped. After that, Invesco again marked down Swiggy’s valuation as companies and investors admitted that the food delivery market was slowing down. As a result, Invesco said Swiggy's valuation was $5.5 billion. That was nearly half of the $10.7 billion valuation Swiggy commanded while raising money in January 2022.

Other investors in Swiggy, such as US-based Baron Capital, have also adjusted the company's valuation in recent months. In March 2023, Baron had reduced the fair value of Swiggy by nearly 40 percent, valuing it at $6.5 billion.

In June 2023, Baron Capital then marked up Swiggy’s fair value by over 30 per cent effectively valuing it at $8.5 billion.

As per media reports, Swiggy is contemplating a stock market debut in 2024 and is expected to raise an estimated $1 billion through the IPO.

Earlier it was reported that the Softbank-backed firm has likely shortlisted Kotak Mahindra Capital, Citi and JP Morgan for senior roles in the IPO deal.

The Bengaluru-headquartered Swiggy has the second-highest market share in the food delivery segment. The company is also in the business of delivering groceries.

Last month, Swiggy appointed former Diageo India managing director and chief executive Anand Kripalu to its board as an independent director and chairman of its board. Earlier, Swiggy also appointed three independent directors ahead of its planned IPO in 2024. Delhivery founder and CEO Sahil Barua, TAFE chairman and managing director Mallika Srinivasan and Shailesh Haribhakti & Associates chairman Shailesh Haribhakti were brought in as independent directors in February.