Invesco raises valuation of IPO-bound Swiggy for second time to $8.3 billion

According to the exchange filing, the valuation of the company is as on October 21, 2023. By the end of this month, Invesco held 28,844 shares in Swiggy, with a total value of $147.6 billion. This equates to a valuation of $8.3 billion for the investment.

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The investor holds approximately a 2% stake in Swiggy, according to Tracxn, a private markets data provider. Regulatory filings indicate that the cost of acquisition for this stake was approximately $190.5 million.

This marks the second consecutive instance in which Invesco has elevated Swiggy’s valuation. In October of the previous year, Invesco had increased Swiggy’s valuation by 42%, reaching $7.85 billion. It’s noteworthy, however, that this adjustment occurred subsequent to Swiggy experiencing consecutive decreases in valuation.

In April of the same year, Invesco reduced Swiggy’s valuation to $8 billion, down from the previous $10.7 billion, as global tech stocks faced a downturn. Shortly thereafter, Invesco once again revised Swiggy’s valuation downward, acknowledging that the growth of the food delivery market was slower than initially anticipated by companies and investors worldwide.

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Consequently, Invesco reported that Swiggy’s valuation stood at $5.5 billion, marking a significant decline from the $10.7 billion valuation the food delivery platform secured in January 2022 during its fundraising round, as disclosed in May of the previous year. 

Even with Invesco’s approximately 6 percent increase in Swiggy’s valuation, the latest assessment suggests a reduction in the company’s worth compared to its valuation of $10.7 billion in January 2022 when it raised $700 million in a funding round led by the US-based AMC.

Investors commonly reference public market valuations when assessing private market companies, and Swiggy is no different. The latest valuation update for Swiggy, at $8.3 billion as of October 2023, reflects a slight increase. Notably, during that period, Zomato’s shares were trading slightly lower than their current levels, hinting at the potential for Swiggy’s valuation to see further growth in the coming months.

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Zomato, which is a publicly listed company, has been enhancing its financial performance, leading to its market capitalization surpassing ₹1 lakh crore, equivalent to over $12 billion.

Additional investors in Swiggy, including Baron Capital based in the United States, have recently recalibrated the company’s valuation. As of March 2023, Baron Capital has lowered the fair value of Swiggy by almost 40%, establishing its valuation at $6.5 billion.

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Published: 04 Jan 2024, 09:28 PM IST