Ahead Of IPO, Swiggy Gets Another Valuation Mark Up From Invesco

US-based fund manager Invesco has marked up Swiggy’s fair value by 19% to $12.7 Bn as of the end of March 2024 as it gears up for its initial public offering (IPO).

Interestingly, this is the third time in a row that Invesco has marked up the food delivery giant’s valuation after slashing it twice. Recently, a regulatory filing revealed that as of October 2023, it marked up the valuation of the company to $8.3 Bn, while in July the valuation marked up to $7.85 Bn. 

Last year, the company reported that with a 2% stake in Swiggy, Invesco’s 28,844 shares were valued at $147.6 Mn, reflecting a fair value of $8.3 Bn. The fund manager’s initial acquisition cost for the stake was $190.5 Mn.

Invesco, which led Swiggy’s $700 Mn funding round in 2022, enabled the foodtech giant’s entry into the decacorn club. 

Following the round, the valuation of Swiggy soared between $10 Bn and $11 Bn, which was later brought down by the lead investor later in two instalments. 

The fresh development comes a day after the IPO-bound food aggregator turned public limited company. 

The company proposed that the “name of the company be and is hereby changed from ‘Swiggy Private Limited’ to ’Swiggy Limited’ by deletion of the word ‘Private’ from the name of the company”. According to the company’s filings, the transformation was aimed at enabling the raise of funds from the public, including through an IPO.

The proposed IPO, expected later this year, is likely to have an issue size of $1 Bn (INR 8,300 Cr). On speaking with some investors, Inc42 learnt that this is likely to be the biggest IPO by an internet company in India. 

However, the company’s loss reportedly stood at $207 Mn during the first nine months of the financial year 2023-24 (FY24). The company incurred a net loss of INR 4,179.3 Cr in FY23.