Baron, a US-based fund manager, has revised the value of its stake in Swiggy to USD 87.2 million, indicating a valuation of USD 12.16 billion for the hyperlocal commerce unicorn as it gears up for its reportedly upcoming initial public offering (IPO), as per a report by Moneycontrol.
Mint reported earlier this year that Invesco, a US-based asset management company (AMC), increased Swiggy’s valuation to USD 8.3 billion two times in a row.
The valuation adjustment for Swiggy by Baron comes amidst the backdrop of its competitor, Zomato, witnessing around a 58 per cent surge in stock price over the last six months, fueled by improved profitability and rapid growth of its quick commerce arm, Blinkit. Zomato’s current market capitalization stands at ₹1,41,072.44 crore, as per BSE.
Baron’s reassessment of Swiggy’s value, as of December 31, 2023, coincides with Zomato’s market capitalization reaching USD 13 billion ( ₹1.07 lakh crore).
Despite Swiggy’s revenue climbing by 45 per cent to ₹8,625 crore in FY23, its net loss widened to ₹4,179 crore. This was a significant increase from the previous financial year’s revenue of ₹5,705 crore and a net loss of ₹3,629 crore, as per the Moneycontrol report.
Mint in February reported that Zomato’s financial results for the October-December quarter of fiscal 2023-24 (Q2FY24), showcased a consolidated net profit of ₹138 crore. This marks a significant turnaround from the net loss of ₹347 crore recorded in the same period last year. The online food delivery platform has now achieved profitability for the third consecutive quarter. Additionally, Zomato reported a substantial increase in revenue from operations for the third quarter of the current fiscal, reaching ₹3,288 crore. This represents a notable growth rate of 69 per cent compared to the ₹1,948 crore revenue recorded in the corresponding period last year.
Additionally, the food delivery platform Swiggy unveiled a collaboration with the Indian Railway Catering and Tourism Corp (IRCTC) to provide pre-ordered meals to travellers at four prominent railway stations across India. This move aligns Swiggy with its competitor Zomato, which already offers a similar service, as Mint reported on March 5.
