In runup to Swiggy’s IPO, Baron marks up food-delivery firm’s valuation to $15.1 bn
BENGALURU:Swiggy’s fair valuation has been marked up to $15.1 billion by top investor Baron Capital as of 31 March, underscoring the food and grocery delivery platform’s growth potential ahead of its public-market listing.This marks a 24% jump in valuation from Baron’s previous disclosure, as per filings with the US Securities and Exchange Commission. The New York-based asset management firm, which was one of Swiggy’s earliest investors, had valued the share of its holdings in the Indian company at $12.2 billion last year.In April, another top US-based investor, Invesco, lifted its valuation of Swiggy by nearly 20% to $12.7 billion.
Invesco had cut Swiggy’s valuation twice in 2023 before lifting its estimate of the company’s worth twice this year.Despite the markups, Swiggy faces significant challenges in a slowing market, where increasingly price-conscious customers complicate growth. These difficulties are compounded in a fiercely competitive landscape, where rival Zomato is also striving to expand its user base, minimize cash burn, and achieve positive unit economics.
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