Food and grocery delivery platform Swiggy’s valuation has been increased to $15.1 billion by US-based money manager Baron Capital. This is almost a 25 per cent jump from the company’s last valuation in December 2023. This was first reported by the Economic Times.
As of December 31, 2023, Baron Capital valued Swiggy at $12.1 billion. The latest valuation ascribed to the company, which has filed draft papers for an initial public offering (IPO), is as of March 31.
The valuation of the respective portfolio companies is reviewed by crossover funds. As per Investopedia, “A crossover fund is an investment fund that holds both public and private equity investments.” Various factors, such as the stock market performance of the other competitive peers, are considered while considering the fair value.
This is the fourth time that Baron Capital has raised the valuation of Swiggy. At a $10.7 billion valuation, Baron Capital also took part in Swiggy's $700 million investment round in January 2022.
Read: Why Aren't Swiggy and Zepto Following Zomato's B2B Grocery Path?
Meanwhile, recently, Swiggy’s competitor, Zomato’s market capitalization increased to $19,1 billion. Additionally, as per brokerage firm Goldman Sachs, Zomato's Blinkit fast commerce operation now has a higher indicated value than the parent company's main meal delivery business. Goldman Sachs increased the price objective for the meal delivery aggregator to ₹240 from ₹170.
Swiggy is now preparing for its initial public offering. The company recently confidentially filed its IPO papers with the Securities and Exchange Board of India, as per a report by the Economic Times. In the fresh capital raised through the IPO, Swiggy aims to raise Rs 3,750 crore. An offer-for-sale component of around $800 million is also included in it. When promoters sell their shares to raise additional funds for the company, it is called an offer for sale. Other start-ups that are willing to go public this year include Ola Electric, FirstCry,
