Invesco Marks Down Valuations Of IPO-Bound Swiggy, Pine Labs

Prosus Nets $2 Bn From Total Investment In Swiggy

SUMMARY

Invesco pegged the value of its 28,844 shares of Swiggy at $219.2 Mn at the end of April 2024, translating into a valuation of $12.3 Bn for the foodtech major

Invesco also pegged fintech startup Pine Labs at $3.5 Bn valuation at the end of April 2024, down 8.5% from $3.8 Bn in January 2024

The valuation cut come as Swiggy gears up for its $1.25 Bn IPO

US-based fund manager Invesco marked down the valuations of its portfolio startups, IPO-bound Swiggy and Pine Labs, on its books at the end of April 2024.

As per its half-yearly shareholder report filed with the US Securities and Exchange Commission (SEC), Invesco pegged the value of its 28,844 shares, or about 1.77% stake, of Swiggy at $219.2 Mn at the end of April 2024. This translates into a valuation of $12.3 Bn for the foodtech major.

This valuation represents a decline of 3% from the $12.7 Bn valuation at which a fund of the US-based investor reportedly last valued the foodtech major. However, the latest number of $12.3 Bn is still nearly 15% higher that the $10.7 Bn valuation at which Invesco-led Swiggy’s $700 Mn decacorn round in 2022.

Meanwhile, Invesco pegged fintech startup Pine Labs at $3.5 Bn at the end of April 2024, down 8.5% from $3.8 Bn in January 2024. The number is also down more than 27% from $4.8 Bn at which Invesco pegged Pine Labs at the end of December 2023.

The valuation cuts come as Swiggy gears up for its listing on the bourses. The foodtech major has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) via confidential route for its reported $1.25 Bn initial public offering (IPO).

The latest development also comes a month after US-based asset manager Baron Capital hiked Swiggy’s valuation on its books by a hefty 25% to $15.1 Bn at the end of March 2024.

This stands in contrast to last year when both Invesco and Baron Capital cut the valuation of the foodtech major multiple times on their books. The same has been the case for Pine Labs, which has been on a rollercoaster ride of valuation cuts and markups by its investors.

The wave of valuation cuts last year was largely attributed to the raging funding winter and mounting losses of Indian unicorns. However, investor sentiment has improved since then as homegrown new-age tech companies undertook drastic measures, including layoffs, over the last couple of years to curb losses and turn profitable.