Swiggy Valuation Soars to $15.1 Billion as Baron Capital Marks up Stake

US-based asset management company Baron Capital Group has marked up the valuation of Swiggy to $15.1 billion, indicating a significant increase from the $12.1 billion estimated in December 2023, according to regulatory filings with the US Securities and Exchange Commission (SEC). This latest mark-up represents a nearly 25 per cent jump in Swiggy’s valuation.

Baron Capital has raised the fair value of its stake in Swiggy for the fourth consecutive time, aligning with the food delivery platform’s draft documents for an initial public offering (IPO) filed with the Securities and Exchange Board of India (SEBI). Swiggy’s shareholders have approved a $1.25 billion public issue proposal.

As part of the IPO, Swiggy aims to raise ₹3,750 crore ($450 million) in fresh capital and include an offer-for-sale component of up to ₹6,664 crore ($800 million). To strengthen its financial position ahead of the IPO, Swiggy has been focusing on profitability by reducing expenses.

In a bid to improve its financials, Swiggy announced a workforce reduction of 6% back in January, affecting around 350-400 employees across departments like technology, call centres, and corporate functions. Despite the profitability of its food-delivery business, Swiggy has been grappling with cash burn in its grocery unit, Instamart, prompting the company to streamline operations and enhance financial metrics.

The company’s largest shareholder, Prosus, reported a 35% reduction in Swiggy’s losses to $208 million for the first half of the year ended September 30, 2023, further reflecting the firm’s efforts to strengthen its financial position and appeal to potential investors. With the latest move by Baron Capital to raise Swiggy’s valuation to $15.1 billion, the food delivery giant is gearing up for its much-anticipated IPO, positioning itself strategically in the fiercely competitive market.