Invesco, a US based investment management company, has increased the valuation of food tech gaint Swiggy by $12.7 billion. This is an increase of 18 per cent of the valuation at which the start-up raised money in 2022, as per a regulatory filing as reported by the Economic Times.
Invesco led the $700 million funding round for Swiggy in 2022. During the funding round, Swiggy was valued at $10.7 billion. Investors such as Baron Capital Group, Sumeru Venture, IIFL AMC Late Stage Tech Fund, Kotak, Axis Growth Avenues AIF-I, Sixteenth Street Capital, Ghisallo, and Smile Group participated in the round.
After a series of cuts, Invesco increased Swiggy’s valuation to $8.3 billion for the second consecutive time. This was according to a regulatory filing on October 21, 2023. During that time, Invesco had 28,844 shares in Swiggy, and the total value of the shares was $147.6 million.
In March 2023, Invesco cut Swiggy’s valuation to $8 billion. It was further reduced to $5.5 billion in July. Factors such as layoffs at Swiggy, the shutting of various verticles, and the introduction of a platform fee, might have been responsible for the reduced valuation.
The increase in valuation comes at a time when Baron Capital, a US-based asset manager, also increased Swiggy’s valuation to $12.1 billion. This was 13 per cent higher than when Swiggy raised funds in 2022 at $10.7 billion.
Crossover funds occasionally review the value of portfolio companies. As per Investopedia, “a crossover fund is an investment fund that holds both public and private equity investments. Crossover funds invest in both publicly traded companies and privately held ones.” These funds use various indicators, such as the stock market performance of the company and their peers, to make the valuation.
