Baron Capital, an investor in Indian food delivery startup Swiggy, has upped the value of its stake in the Indian company, suggesting a valuation of $12.16 billion, with Swiggy expected to sell in early 2022. That's above the post-money valuation of $10.7 billion for which it secured funding.
New York-based Baron Capital has increased the value of its stake in Bangalore-based Swiggy to $87.2 million, it revealed in new content (PDF), increasing its initial investment in the food delivery platform to $76.7 million. The amount was increased from $.
The increase in valuation at the end of December is a notable development for Swiggy and the Indian startup ecosystem more broadly. This is especially important given that Swiggy's valuation had previously been slashed to a low of $5.5 billion.
Swiggy has around 45% market share in India's food delivery sector and is “well positioned to benefit from the structural growth of online food delivery in India,” Baron Capital said in a separate filing (PDF ) is written.
Further, “India's food delivery industry is still in its infancy and will continue to grow in the coming years thanks to a growing middle class, rising disposable income, rising smartphone penetration and tectonic changes in consumer preferences driven by technology.” “I think it will continue to expand,” he added. – Knowledgeable and young generation. Also, the industry has become a duopoly of his Swiggy and Zomato, which bodes well for the company's future profitability and scale. ”
Swiggy reported cutting costs and turning its food delivery business into the black last year, and has maintained this performance ever since. The startup plans to file for an IPO later this year.
Swiggy's main rival Zomato's share price has soared in the past six months as the Gurgaon-based company's financials improve. Zomato's market capitalization was about $17 billion.
Swiggy is also a major player in the instant grocery delivery space in India and is increasingly expanding its services. Swiggy, whose backers include Prosus Ventures, Accel and SoftBank, is expanding into consumer electronics and other categories and is dominating the e-commerce market by offering 20-minute delivery on all purchases. We are aiming for a larger share of the market.
Meanwhile, Walmart-backed Indian e-commerce leader Flipkart is planning to enter the instant delivery space, TechCrunch reported on Thursday.