Invesco Marks Up Swiggy’s Valuation To $13.3 Bn Ahead Of IPO

US-based asset manager Invesco has raised the valuation of foodtech major Swiggy to $13.3 Bn, a jump of almost 25% from the last fair value recorded by the investor. 

Invesco had participated in Swiggy’s $700 Mn funding round in January 2022 at a valuation of $10.7 Bn. Back then, the investor spent $190.47 Mn for a stake in the IPO-bound company. 

And now, Invesco’s Developing Markets Fund values its stake in the foodtech decacorn at approximately $219.25 Mn as of July 2024. The asset manager holds 28,844 shares of Swiggy, TechCrunch reported.

This is not the first time Invesco has revised its valuation of Swiggy. In July last year, it cut the valuation of the Bengaluru-based startup to $5.5 Bn when the food delivery market was facing a downturn.

At the end of April this year, it valued Swiggy at about $12.3 Bn. 

Invesco’s mark up of Swiggy’s valuation comes at a time when the foodtech major is looking to go public. Earlier this month, the foodtech major filed an updated draft red herring prospectus with market regulator SEBI to raise more than INR 3,750 Cr through its initial public offering (IPO).

Swiggy is eyeing a valuation of $15 Bn for its IPO. On the other hand, its archrival Zomato was valued at about $7 Bn as per its IPO in 2021 and got listed at a valuation of $12 Bn. 

Zomato’s market cap has since zoomed and currently stands at INR 2.42 Lakh Cr (about $28.9 Bn). 

Recently, brokerage firm Elara Capital said it expects Swiggy to command a lower valuation in the public market as compared to Zomato as it continues to lag behind the Deepinder Goyal-led startup across several key metrics such as revenue, gross order volume, and order count.

However, investors have been lining up to buy unlisted shares of Swiggy ahead of its eagerly-anticipated IPO, reflecting growing investor appetite for the stock amid a bull run in the Indian equities market.

Ace Indian cricketers Rahul Dravid and Zaheer Khan, along with celebrities like Madhuri Dixit and Amitabh Bachchan, have recently purchased a stake in Swiggy.

As per its DRHP, Swiggy saw its consolidated net loss widen by over 8% to INR 611 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 564.08 Cr in the year-ago period owing to a surge in operating costs.

However, Swiggy’s revenue from operations zoomed 35% to INR 3,222.2 Cr during the quarter under review from INR 2,389.8 Cr on the back of strong growth in its food delivery and quick commerce businesses.