Baron Capital Group has announced an upward adjustment in the valuation of the food-delivery platform Swiggy to $12.1 billion as of Friday, March 8, 2024, according to a report by The Economic Times.
This latest valuation represents a notable 13 percent increase from its previous valuation of $10.7 billion recorded in 2022.
The US-based asset management firm had previously participated in a $700 million funding round for Swiggy in January 2022.
As disclosed in filings with the US Securities and Exchange Commission, this updated valuation reflects Swiggy's assessed value as of December 31, 2023.
Baron Capital Group's investment fund observed a rise in its stake value in Swiggy's parent company, reaching $87.2 million by December 31, which signifies a 17 percent increase from the previous quarter's $74.4 million. Initially, the stake was appraised at $76.8 million.
Periodic revaluations of investments in privately held entities such as Swiggy are commonplace among investment firms like Baron Capital Group. These reassessments are based on various factors, including internal developments within the company and the performance of comparable peers in the stock market.
Baron Capital Group also maintains investments exceeding $11 million in Swiggy's competitor, Zomato, which boasted a market capitalization exceeding $17 billion on Friday.
Invesco, another investor, had previously revised Swiggy's valuation to $9.5 billion as of October 31, 2023.
Swiggy is currently preparing for a significant $1 billion initial public offering (IPO), with reports indicating the inclusion of an offer-for-sale component totaling at least $600 million. This provision will enable existing investors to divest a portion of their stakes in the company.
Prosus, Swiggy's principal shareholder, reported a noteworthy 35 percent reduction in the company's losses for the half-year concluded on September 30, narrowing down to $208 million.
Both Swiggy and Zomato are vying for dominance in the food-delivery market, with industry analysts highlighting their quick-commerce verticals as the next frontier for growth. Zomato owns Blinkit, while Swiggy operates in this domain through its Instamart vertical.
