Invesco, an asset management company based in the United States, has increased Swiggy’s valuation by 19 per cent to $12.7 billion ahead of the Indian startup’s planned initial public offering (IPO), regulatory filings showed. The investor had led the food delivery firm’s $700 million funding round in January 2022 at a valuation of $10.7 billion.

The recent mark-ups have brought Swiggy’s valuation closer to that of its rival, Zomato. The BSE-listed company has witnessed a surge in its share price, reaching a record high of Rs 193.7 per share as of 4:30 pm on April 9. This strong performance, driven primarily by its quick-commerce segment, has propelled Zomato’s market capitalisation to over $20 billion.

Investors usually take into account the valuations in the public market when assessing private market companies, and Swiggy is no different.

These developments coincide with Swiggy’s preparations for its much anticipated $1 billion IPO. Last month, news agency Reuters, citing internal documents, reported that Swiggy’s losses stood at $207 million during April to December 2023 – the first nine months of fiscal year 2023-24.

During the same period, Swiggy generated revenue of $1.02 billion, slightly lower than the $1.05 billion revenue in fiscal year 2022-23, showed the document.

Swiggy group chief executive officer Sriharsha Majety had earlier said that IPO preparations are underway. From appointing investment bankers to board members and converting its businesses (Bundl Technologies and Swiggy Ltd) to public limited companies, Swiggy is doing it all to likely list later this year.

First Published: Apr 09 2024 | 5:01 PM IST