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US-based Baron Capital cuts Swiggy’s fair value by another 10%, for second time in 3 months

May 26, 2023 / 03:55 PM IST

Baron Capital has now slashed the fair value of Swiggy for the second time in three months, similar to the US-based asset management company Invesco. Invesco effectively halved Swiggy's valuation to $5.5 billion as of January 31, 2023.

Swiggy last raised funds in January 2022 at a valuation of $10.7 billion, which made it one of the most valuable startups in the country.

US-based Baron Capital has slashed foodtech platform Swiggy’s fair value by another 10 percent, effectively valuing the company at $6.5 billion as of March 31, 2023. The US-based fund had cut Swiggy’s fair value by 34 percent as of December 31, 2022.

Baron Capital has estimated the fair value of its stake in Swiggy at $45.76 million as of March 31, 2022, according to the investor’s filings with the Securities and Exchange Commission (SEC). Baron Capital holds about 0.7 percent stake in Swiggy, and its fair value estimate implies a $6.54 billion valuation for the foodtech unicorn.

Baron Capital invested in Swiggy in January last year and according to the SEC filings, it paid $76.8 million for 11,578 shares of the foodtech platform, valuing Swiggy at $10.96 billion. Swiggy declined to comment.

The implied valuation of Swiggy, as per Baron's fair value estimate, is now lower than the market capitalisation of its biggest rival, Zomato. Zomato, which was listed in mid-2021, currently has a market capitalisation of around Rs 57,000 crore or around $6.6 billion as of May 26, assuming the value of one US dollar to be Rs 80. However, as of March 31, Zomato had a valuation of less than $5 billion.