In what could certainly boost Swiggy’s public debut prospect, US-based asset management platform Invesco has increased the value of its stake in Indian food delivery aggregator Swiggy. The firm assesses that the value of its stake has risen by 25%, which increases the valuation of the firm at $13.3 billion, as per a filing with the US Securities Exchange Commission (SEC). The fact that this comes just ahead of IPO, is hardly surprising though.
Swiggy is planning to launch its initial public offering (IPO) next month, aiming to raise up to $1.4 billion. According to Invesco’s Developing Markets Fund, its stake in Swiggy currently comprises of 28,844 shares – an overall stake of 2% – and is now valued at $237.24 million, marking a sharp increase from its original investment of $190.47 million.
The original investment was made two years ago when Invesco took part in a funding round that elevated Swiggy’s valuation to $10.7 billion. Since then, Invesco has been party to several valuation adjustments of Swiggy, both markups and markdowns alike. For example, the asset management firm reduced its valuation of Swiggy to $5.5 billion last year, and the firm was valued at nearly 12.3 billion by April 2024.
Swiggy clocked a strong financial performance for the quarter ended June 2024 (Q1 FY25). During the period, its revenues from operations amounted to ₹3,222 crore, marking an increase of 34.81% from the ₹2,390 crore recorded in the corresponding quarter in the previous year. Its losses also narrowed during the period, dropping by 8.3% to amount to ₹611 crore.
Swiggy currently counts Zomato as its chief rival in the domestic food delivery sector. Going forward, Swiggy has ambitious plans for its IPO – the foodtech giant has already filed a draft red herring prospectus (DRHP) with the Security Exchange Board of India (SEBI). It aims to raise funds through an issue of equity shares that amount to up to ₹3,750 crore, as well as an offer for sale (OFS) of up to 185,286,265 equity shares, thus raising the total to around ₹6,664 crore. Some of the more prominent names taking part in the OFS are Accel, Alpha Wave Ventures, Apoletto Asia, and Baron Emerging Markets Fund, amongst others.
