US asset manager Invesco estimates an implied valuation of about $13.3 billion in Swiggy, an Indian food delivery and quick commerce startup that plans to go public in about a month, and holds a stake in the company. It increased the value of Swiggy stock.
Invesco's Developing Markets Fund said in a disclosure on Tuesday that its holdings of 28,844 Swiggy shares were valued at $237.24 million at the end of July 2024. The asset manager bought Swiggy stake for $190.47 million.
Invesco invested in Swiggy in early 2022, leading a $700 million round in the Bangalore-based startup. This round valued the company at $10.7 billion.
Invesco was quite conservative in its valuation of Swiggy stock. After the market decline in 2023, Invesco lowered Swiggy's estimated value to $5.5 billion at the end of July 2023, leaving it unchanged at around $12.3 billion at the end of April this year.
Companies use a variety of methods to calculate valuations for private companies. Generally, we use the market performance of publicly traded rival companies to benchmark such companies. Swiggy's biggest rival Zomato has had a market capitalization of between $22 billion and $30 billion in recent months.
Barron, another Swiggy investor (though he owns fewer stakes in the food delivery startup than Invesco), valued the Indian company at $15.1 billion at the end of March this year.
“In our view, Swiggy is well positioned to benefit from the structural growth of online food delivery in India,” Baron said in the June letter. “The food delivery industry in India is still in its infancy, thanks to a growing middle class, rising disposable income, increasing smartphone penetration, and structural changes in consumer preferences driven by tech-savvy consumers. We believe that it will continue to grow in the coming years with a younger population. Also, the industry has become a duopoly of Swiggy and Zomato, which bodes well for the company's future profitability and scale.”
The valuation hike comes at a time when many investors are cutting down on the value of their holdings in several Indian and international startups. Invesco has downgraded its holding in merchant payments startup Pine Labs, suggesting the startup will be valued at $3.3 billion from its peak of $5.5 billion.
In its June update to investors, asset manager 360 One valued VerSe, the Indian startup behind the popular news aggregator Dailyhunt, at $2.9 billion, the price that VerSe raised in its previous private round. announced that it was below $5 billion. April 2022.
TechCrunch previously reported that 360 One was valued at around $900 million by online meat and seafood retailer Licious and $1.9 billion by edtech company upGrad.
Swiggy is aiming to raise up to $1.4 billion in the IPO at a valuation range of $13 billion to $15 billion.