US-based asset manager Baron Capital has increased Swiggy’s valuation to $15.1 billion, according to regulatory filings with the US Securities and Exchange Commission (SEC). This is a notable rise from Baron’s previous valuation of $12.2 billion, marking a 24% increase. This new valuation brings Swiggy closer to its competitor Zomato, which recently achieved a market capitalization of around $19 billion, even surpassing $20 billion at its peak.
Swiggy’s Upcoming IPO
Swiggy is reportedly gearing up for an initial public offering (IPO) later this year. The company has filed confidential papers with the Securities and Exchange Board of India (SEBI) and has received shareholders’ approval for a $1.25 billion IPO. According to regulatory filings, Swiggy plans to raise to Rs 3,750 crore (approximately $450 million) through a fresh issue and up to Rs 6,664 crore (around $800 million) through an offer-for-sale (OFS) component. Additionally, Swiggy aims to secure around Rs 750 crore from anchor investors ahead of its IPO.
Is Swiggy Profitable?
Unlike Zomato, which reported a profit of Rs 175 crore in Q4 FY24, Swiggy is still facing challenges with profitability. For the first three-quarters of FY24, Swiggy reported revenue from operations of Rs 5,476 crore and a loss of Rs 1,600 crore. In FY23, the company’s revenue was Rs 8,265 crore, with total losses amounting to Rs 4,179 crore.
Financial Performance
Swiggy’s financial performance reflects its ongoing struggle to achieve profitability despite its significant market presence and valuation increase. The company’s valuation hike by Baron Capital indicates strong investor confidence and potential growth prospects as it prepares for its upcoming IPO.
Comparison with Zomato
Swiggy’s valuation hike brings it closer to its main competitor, Zomato, in terms of market capitalization. While Zomato has shown profitability, Swiggy is still working towards reducing its losses and improving its financial health. The upcoming IPO is expected to play a crucial role in Swiggy’s efforts to achieve these goals.
Swiggy’s valuation increase to $15.1 billion by Baron Capital highlights the growing confidence in the foodtech sector. As Swiggy prepares for its IPO, the company faces the challenge of achieving profitability similar to its rival Zomato. The successful execution of its IPO and strategic financial management will be key factors in Swiggy’s future growth and market position.
