Baron Capital Marks Up Swiggy Valuation by 13% To $12.1 Bn: Report

A US-based asset management firm Baron Capital Group has escalated the value of its stake in the renowned food delivery giant Swiggy to USD 12.1 billion, according to media reports. This new valuation represents a substantial 13 per cent increase from the USD 10.7 billion valuation at which Swiggy last raised funds in 2022.

Baron Capital has marked up the fair value of its holding in Swiggy for the third consecutive time. The firm had notably participated in Swiggy's USD 700-million funding round in January 2022. Disclosed in filings with the US Securities and Exchange Commission, this latest valuation underscores Swiggy's value as of December 31, 2023.

Notably, Baron Capital has elevated the value of its stake in Swiggy to USD 87.2 million from its original investment of USD 76.7 million in the company.

This surge in valuation comes after US investment firm Invesco, which led Swiggy's previous funding round, marked down the food delivery giant's valuation by 33 per cent from USD 8.2 billion to approximately USD 5.5 billion. 

However, Invesco subsequently revised Swiggy's valuation to USD 7.85 billion after two markdowns within four months in 2023. Swiggy, a decacorn since January 2022 after raising USD 700 million in Invesco-led funding, witnessed its valuation nearly double to 1USD 0.7 billion.

Baron's latest valuation surpasses Swiggy's anticipated $11 billion IPO valuation target. The Bengaluru-based company is gearing up to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its IPO imminently.

With plans to raise an estimated $1 billion (Rs 8,300 crore) through the IPO this year, Swiggy aims for a valuation ranging between $10-11 billion. Currently, the company boasts approximately $800 million in cash from the previous funding round, according to insider sources.

As Swiggy steers towards its IPO, the company intensifies efforts to achieve profitability. In FY23, Swiggy reported a notable 45% increase in revenue, amounting to Rs 8,625 crore. However, the net loss expanded to Rs 4,179 crore, underlining the company's commitment to refining its business model for sustained growth and profitability in the competitive food delivery landscape.