Baron Capital marks up Swiggy’s valuation again, pegs value at $15.1 billion

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

US-based money manager Baron has marked up the value of its stake in Swiggy, effectively ascribing a valuation of $15.1 billion to the hyperlocal commerce startup ahead of its initial public offer (IPO) later this year.

The latest valuation, as of March 31, is a jump of 24 percent from Baron’s previous mark-up of Swiggy’s valuation to $12.2 billion, regulatory filings showed. It is also yet another instance where Swiggy’s investors are pushing up the value of the company in line with peers like Zomato.

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

The series of mark-ups now push Swiggy’s valuation of $15.1 billion closer to that of its rival Zomato. The BSE-listed company’s share price neared Rs 200, all time high, in April on the back of robust performance. Zomato’s shares are up over 50 percent in the past six months and have a market capitalisation of around $19 billion. It had even crossed $20 billion in April.

Swiggy did not comment on the developments.

For Swiggy, which is preparing to IPO later this year, such mark-ups will only help improve investor sentiment.

In April, the food tech giant Swiggy had filed confidential papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO), Moneycontrol had reported first.

That was shortly after it received shareholders approval for a $1.25-billion IPO. The Bengaluru-based company, in regulatory filings, said it plans to raise up to Rs 3,750 crore (around $450 million) through a fresh issue and up to Rs 6,664 crore (around $800 million) as an offer-for-sale (OFS) component, as reported by Moneycontrol earlier.

The company also plans to raise around Rs 750 crore from anchor investors ahead of its IPO which is slated for earlier this year, per regulatory filings.