SUMMARY
- Invesco raises Swiggy’s valuation to $13.3B despite a slight drop in valuation by Baron Capital.
- Swiggy’s Q1 FY25 revenue grew 34.81% YoY to ₹3,222 Cr, while losses increased by 8.3% to ₹611 Cr.
- Swiggy plans a $450M IPO with a target valuation between $10B and $13B.
Invesco the US-based asset manager has raised the value of its investment in Swiggy, giving the food delivery and fast-commerce business a valuation of $13.3 billion.
In August, the food tech firm was valued by US investor Baron Capital at $14.74 billion as of June 2024, which is over 2.6% less than its prior estimate of $15.1 billion in March. As of the end of July 2024, Invesco’s Developing Markets Fund reported a valuation of $219.25 million for its 28,844 shares of Swiggy.
“Swiggy is well positioned to benefit from structural growth in online food delivery in India, in our view. We believe India’s food delivery industry is still in its infancy and will continue to scale over the next several years thanks to a growing middle class, rising disposable income, higher smartphone penetration, and structural shifts in consumer preferences driven by a tech-savvy, younger population. The industry has also become a duopoly between Swiggy and Zomato, which bodes well for the future profitability and scale of the company”, Baron stated in a letter in June.
Invesco has increased its Swiggy valuation for the fourth time in the past 12 months. The business led a $700 million funding round for the Bengaluru-based food-tech firm Swiggy at the beginning of 2022. The round put the company’s valuation at $10.7 billion. This comes after Swiggy submitted draft IPO filings, intending to raise $450 million through a new offering. When the Bengaluru-based company goes public, it is projected to aim for a valuation between $10 billion and $13 billion.
Swiggy reported operating revenue of ₹3,222 crore for the quarter ended June 2024 (Q1 FY25), up 34.81% from ₹2,390 crore in Q1 FY24 when their losses increased by 8.3% to ₹611 crore.
