Baron Capital Raises the Valuation of Swiggy to USD 15.1 Bn Baron Capital invested in Swiggy when the company raised USD 700 million, valued at USD 10.7 billion.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
US-based asset management firm Baron Capital has marked up the valuation of Swiggy to USD 15.1 billion, as per regulatory filings with the US' Securities and Exchange Commission (SEC).
The company's worth has increased by almost 25% from Baron's December 2023 estimate of USD 12.1 billion. Swiggy's early backer, Invesco, also raised the company's valuation to USD 12.7 billion in April, shortly after Baron's markup.
Baron stated that the company's shares "were up during the quarter, driven by improving profitability of the company and increasing penetration of food delivery in India."
Baron also mentioned the potential for growth in India's meal delivery sector, which is mostly being driven by the country's expanding middle class, greater disposable income, and increased smartphone adoption.
Baron Capital invested in Swiggy when the company raised USD 700 million, valued at USD 10.7 billion.
Founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, Swiggy has so far raised over USD 3.5 billion from several investors, including SoftBank, GIC, and QIA.
According to a filing with the Ministry of Corporate Affairs, the Bengaluru-based foodtech startup gained shareholder approval in April for its planned USD 1.2 billion initial public offering (IPO).
According to media reports, the company intends to publish its draft red herring prospectus (DRHP), which is a public document outlining the goals of an IPO-bound company for the offer, during the course of the next few months in order to complete the IPO by the end of the year.
The Economic Times reported that the food delivery firm intends to seek fresh capital of up to INR 3,750 crore (USD 450 million) and an offer-for-sale (OFS) component valued up to INR 6,664 crore (USD 800 million) as part of its public listing plans.
According to stock exchange data, Swiggy's fiercest competitor, Zomato, is currently valued at USD 18.7 billion. The latter recently reached a USD 21 billion market valuation.
