Baron Capital increases Swiggy’s worth by 13% to $12.1 billion

Baron Capital Group increased Swiggy’s value to $12.1 billion on March 8, 2024. This is up 13% from its $10.7 billion valuation in 2022, as reported by The Economic Times. The US-based asset manager had invested in Swiggy during a $700 million funding round in January 2022.

The most recent valuation, revealed in filings with the US Securities and Exchange Commission, represents Swiggy’s value as of December 31, 2023.

As of December 31, the fund managed by Baron Capital held a stake valued at $87.2 million in Swiggy’s parent company, a 17% increase from the previous quarter’s $74.4 million. Initially, the stake was valued at $76.8 million.

Investment firms like Baron Capital periodically reassess the worth of their investments in privately held companies like Swiggy, considering various factors such as company events and the performance of similar companies in the stock market.

Baron Capital Group also owns stakes valued at over $11 million in Swiggy’s competitor, Zomato. Zomato’s market capitalization was over $17 billion on Friday.

Invesco, another investor, had previously raised Swiggy’s valuation to $9.5 billion as of October 31, 2023.

Swiggy is preparing for a $1 billion initial public offering (IPO), expected to include an offer-for-sale component of at least $600 million, according to media reports. This component will enable existing investors to sell some of their stakes in the company.

Prosus, Swiggy’s biggest shareholder, announced a 35% decrease in the company’s losses for the half-year ending September 30, reducing to $208 million.

Swiggy and Zomato are both aiming for market leadership in food delivery, with analysts highlighting their fast-commerce divisions as the next area for growth. Zomato owns Blinkit, while Swiggy operates in this sector through its Instamart platform.

Contextual information about Swiggy

Established in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli, and Rahul Jaimini, Swiggy competes with Zomato in India’s food delivery market, dominated by two major players. Swiggy has garnered approximately $3.6 billion in total funding to date.

In 2022, Swiggy secured $700 million in its Series K funding round led by Invesco, doubling its valuation to $10.7 billion.

By the quarter ending in September 2023, Invesco had valued Swiggy at $7.85 billion, while Baron Capital last valued the startup at $8.54 billion.

Swiggy’s net loss increased by 15% year-on-year to INR 4,179.3 crore in FY23, while its operating revenue surged by over 40% to INR 8,264.4 crore. The startup claimed it achieved profitability in its food delivery business by March 2023.

Recently reported that Swiggy is anticipated to see a revenue increase of over 20% year-on-year in FY24.

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