In a significant development ahead of its anticipated Initial Public Offering (IPO), Swiggy has seen a notable increase in its valuation, with Invesco revising its value to USD 12.7 billion, up from USD 8.5 billion in October 2023, marking a surge of over 49 per cent in just six months.
This marks the third consecutive valuation hike by Invesco, which holds a nearly 2 per cent stake in the food delivery services giant.
The surge in valuation by Invesco mirrors a broader trend, with Swiggy’s worth climbing steadily over recent periods. The global investment banker initially valued Swiggy at USD 5.5 billion in January 2023, followed by a jump to USD 7.8 billion in July 2023, and then to USD 8.7 billion in October 2023.
Over the last 15 months, Swiggy’s valuation has skyrocketed by 130 per cent, as assessed by Invesco.
Notably, Baron Capital has also valued Swiggy at USD 12.1 billion, owning a substantial 7 per cent stake in the company, which also encompasses its quick commerce platform, Swiggy Instamart.
The upward revision in Swiggy’s valuations is underpinned by narrowing losses and a burgeoning income stream.
Swiggy reported a revenue of Rs 5,476 crores for the nine-month period ending 31 December 2023, with losses shrinking to Rs 1,600 crore during this period, down from Rs 4,179 crore in FY23, according to Reuters.
Amidst speculation, Swiggy is anticipated to kickstart a public offering to raise USD 1 billion in 2024.
While market analysts acknowledge that the augmented valuations from global fund-houses may fuel optimism surrounding the IPO, concerns persist over Swiggy’s sustained losses amidst a fiercely competitive landscape. Investors are advised to scrutinise the company’s fundamentals, financial health, and operational efficiency.
In a strategic move, Swiggy is reportedly offering shares at a 20 per cent discount to high-net-worth individuals (HNIs) ahead of its IPO, selling shares at Rs 350 apiece, valuing the company at Rs 80,000 crore USD 9.6 billion), as per a report by Entrackr.
