Invesco marks up Swiggy’s valuation to $12.7 billion ahead of IPO

Sriharsha Majety. co-founder and Group CEO of Swiggy

Invesco, a US-based asset management company (AMC), has pushed up Swiggy’s valuation by 19 percent to $12.7 billion in the run-up to its planned IPO, regulatory filings showed. The investor had led the food delivery startup’s $700-million round in January 2022 at a valuation of $10.7 billion.

This now marks the third straight time Invesco has marked up Swiggy’s valuation. It had last increased Swiggy’s valuation to $8.3 billion as of October 2023, after a series of cuts. After that, Baron Capital, one of the company’s investors, had pegged Swiggy’s fair value at $12.2 billion as of March 2024, providing more boost to the IPO-bound startup, Moneycontrol had reported.

The series of mark-ups now push Swiggy’s valuation closer to that of its rival Zomato. The BSE-listed company has seen its share price zoom to a lifetime high of Rs 194.3 apiece as at 2:25pm on April 9. The robust performance, largely on the back of its quick-commerce business, has given Zomato a market capitalisation of over $20 billion. 

Swiggy did not comment on the developments.

Investors typically consider public market valuations when evaluating private market companies, and Swiggy is no exception.

These developments come at a time when Swiggy is preparing for its mega $1 billion IPO. Last month, Reuters, citing internal documents, reported that Swiggy’s losses stood at $207 million during April to December 2023 – the first nine months of fiscal year 2023-24.

That loss was on a revenue of $1.02 billion during the same period, compared with fiscal year 2022-23 revenue of $1.05 billion, the document showed.

Swiggy group CEO,  Sriharsha Majety, had earlier told Moneycontrol that IPO preparations are underway. From appointing investment bankers to board members and converting its businesses (Bundl Technologies and Swiggy Ltd) to public limited companies, Swiggy is doing it all to likely list later this year.