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Invesco marks up Swiggy’s valuation to $12.7 Bn

EntrackrEntrackr · 1y ago
Invesco marks up Swiggy’s valuation to $12.7 Bn
Medial

Swiggy has once again witnessed a valuation mark up to $12.7 billion by US-based investor Invesco. This is second markup in its value by Invesco and overall third for the Bengaluru-based foodtech decacorn. This is an 18% jump in the valuation of Swiggy compared to its last equity round in January 2022. Earlier, Invesco marked up Swiggy’s valuation to $8.3 billion in January whereas US-based asset management firm Baron Capital increased the firm’s valuation to $12.1 billion in March this year. ET reported the development first citing US Securities and Exchange Commission filings. The increase in fair market value comes at a time when Swiggy is preparing for initial public offering (IPO). As per Entrackr’s sources, the company may file IPO papers in the second half of 2024. On Monday, the firm converted itself into a public entity. Entrackr exclusively reported the development. Besides Swiggy, Meesho, PineLabs, FirstCry and Ola Electric have also seen markups in their valuation in the last six months. Significantly, all these companies are preparing to go public in this or early next year. This is a developing story…

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Baron Capital marks up Swiggy’s valuation to $15.1 Bn

EntrackrEntrackr · 1y ago
Baron Capital marks up Swiggy’s valuation to $15.1 Bn
Medial

US-based asset manager Baron Capital has marked up the valuation of Swiggy to $15.1 billion, according to regulatory filings with the US’ Securities and Exchange Commission (SEC). This is a nearly 25% jump in the company’s valuation from $12.1 billion estimated by Baron as of December 2023. Soon after Baron’s mark up, Swiggy’s early backer Invesco also increased its valuation to $12.7 billion in April. The development was first reported by ET. This comes at a time when Swiggy is gearing up for its initial public offering (IPO). The Bengaluru-based firm received shareholders’ nod to float its $1.25 billion IPO and it reportedly filed papers with SEBI via confidential route in May. Before filing IPO papers, Swiggy was pitching a pre-IPO deal to high net-worth individuals (HNIs) to buy its shares at a 20% discount. Entrackr exclusively reported the development. Swiggy recorded Rs 5,476 crore in revenue from operations and Rs 1,600 crore loss during the first three quarters of the financial year FY24. Entrackr had exclusively reported financial numbers and secondary pitch by the company in April. In FY23, its revenue stood at Rs 8,265 crore in FY23 whereas its losses soared to Rs 4,179 crore. Besides Swiggy, Pine Labs, Meesho, FirstCry and Ola Electric also saw markups in their valuation in the last six months. Swiggy’s arch rival Zomato is currently valued at $18.7 billion, as per stock exchange data. The latter recently hit a market cap of $21 billion. Meanwhile, Baron has marked down edtech company Byju’s valuation to only $24 million as of March 2024. Earlier, BlackRock had already slashed the company’s valuation to $1 billion from $22 billion in early 2022.

Exclusive: Swiggy offers 20% discount to HNIs in pre-IPO deal

EntrackrEntrackr · 1y ago
Exclusive: Swiggy offers 20% discount to HNIs in pre-IPO deal
Medial

The Swiggy IPO is around the corner and the company has started preparing the ground for a debut on the stock exchange, likely after the general election. The firm turned into a public entity earlier this week and shortlisted bankers for running the IPO syndicate. While Entrackr exclusively reported about the firm’s conversion into the public entity and its financial numbers in three quarters of FY24, wealth managers on Swiggy’s behalf have been pitching a pre-IPO deal to high net-worth individuals (HNIs) to buy its shares at 20% discount on its current valuation, according to three sources aware of the details. “The company is offering shares at Rs 350 a piece and at a valuation of Rs 80,000 crore ($9.6 billion) valuation. This is roughly a 20% discount,” said one of the sources requesting anonymity According to sources, Swiggy’s current valuation stands at around Rs 1,00,000 lakh crore (over $12 billion). “The minimum investment in the round is Rs 25 lakh,” added the above-quoted person. It’s worth highlighting that US-based investor Invesco recently marked up Swiggy’s valuation up to $12.7 billion, indicating an optimistic outlook for the food tech company. It’s worth noting that it was the second markup in its value by Invesco and overall third for the Bengaluru-based foodtech decacorn. Queries sent to Swiggy did not elicit an immediate response. Swiggy booked Rs 5,476 crore in revenue from operations and Rs 1,600 crore loss during the first three quarters of the financial year FY24. Its revenue and losses stood at Rs 8,265 crore and Rs 4,179 crore, respectively, in the fiscal year ending March 2023. Meanwhile, rival Zomato’s revenue from operations stood at Rs 8,552 crore during the first three quarters of FY24. The firm, which made its public debut in 2021, also booked Rs 178 crore profit during the period. Currently, Zomato’s market cap hovers around $20.7 billion. That being said, Swiggy is marching ahead with its IPO plans as market sentiments appear to turn increasingly bullish following a year of the so-called ‘funding winter’. This is evident from recent valuation markups of several startups, including Meesho, PineLabs, FirstCry, and Ola Electric which are gearing up to go public either this year or early next year. While the sterling turnaround in peer Zomato’s numbers might give cause for optimism to Swiggy’s investment bankers, they will be aware that powering Zomato is the sharp rebound in the performance of Blinkit, its quick delivery platform. Swiggy’s Instamart by contrast, has been a laggard in the space. Lending further credence to the fact that profits on the IPO are hardly a given for investors is the matter of aggregate losses, unlike Zomato. It seems fairly certain that a successful IPO will be followed by at least a year or more of losses for Swiggy, or subdued growth, if it chooses to staunch losses. The $12 billion valuation in private markets, by that measure, seems too optimistic yet, perhaps a fairer indication of value in FY26, than in FY25, if at all.

Baron Capital values Swiggy at $14.7 Bn

EntrackrEntrackr · 11m ago
Baron Capital values Swiggy at $14.7 Bn
Medial

US Investor Baron Capital has valued food-tech company Swiggy at $14.74 billion as of June 2024, according to regulatory filings with the US’ Securities and Exchange Commission (SEC). This is nearly 2.6% down from its last $15.1 billion valuation estimates by Baron Capital in March. The valuation dip in June appears to be a result of rupee depreciation. This comes at a time when Swiggy is gearing up for its initial public offering (IPO). The Bengaluru-based firm received shareholders’ nod to float its $1.25 billion IPO and it reportedly filed papers with SEBI via a confidential route in May. The food tech company will raise up to Rs 3,750 crore ($450 million) via fresh issue of equity shares and an offer for sale of up to an aggregate amount of Rs 6,664 crore ($800 million) in its initial public offering. Swiggy recorded Rs 5,476 crore in revenue from operations and a Rs 1,600 crore loss during the first three quarters of the financial year FY24. Entrackr had exclusively reported financial numbers and a secondary pitch by the company in April. Ahead of the IPO, Swiggy also rolled out its fifth ESOP liquidity programme worth $65 million in July. It claims to have enabled over Rs 1,000 Cr of ESOPs liquidity over the five events which benefited 3,200 employees. Swiggy’s rival Zomato is currently valued at $28.3 billion, as per stock exchange data. The Deepinder Goyal-led firm posted Rs 4,206 crore in revenue with Rs 253 crore in profits in the first quarter of FY24. According to the UBS report, Zomato’s order growth increased by 1.6% MoM in July while Swiggy’s order growth decreased by 4.6%. On a year-on-year basis, Zomato registered 29% growth as compared to 11% growth by Swiggy.

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