Invesco, a significant investor in Swiggy, has increased the valuation of its stake in the food delivery giant to $12.7 billion, marking an 18% surge from its previous funding round in January 2022. This development,
sourced from filings submitted to the US Securities Exchange Commission (SEC), comes shortly after Baron Capital hiked Swiggy’s valuation to $12.1 billion,
up 13% from its previous fundraise of $700 million. Notably, Invesco had downgraded Swiggy’s valuation to $5.5 billion in May 2023, before revising it to $9.5 billion by October 2023.
Swiggy’s Preparations for Public Listing:
Today, YourStory revealed that Swiggy has transitioned into a public entity, renaming itself Swiggy Limited from Swiggy Private Limited, signaling its readiness for an imminent public market debut later this year.
The move aligns with Swiggy’s plans to raise up to $1 billion through an initial public offering (IPO) anticipated in the coming months.
Media reports indicate that Swiggy is poised to file its draft red herring prospectus (DRHP) within the next few months, detailing its objectives for the IPO.
Market Context:
Swiggy’s decision to go public mirrors recent trends observed in the market, with companies like FirstCry and Ola Electric also pursuing listings amidst turbulent global economic conditions.
Despite prevailing macroeconomic uncertainties, emerging brands are demonstrating resilience and determination to navigate the challenges, leveraging public listings as a strategic move to fuel growth and expansion.
Financial Performance:
Last year, Swiggy announced a significant milestone as its food delivery business achieved profitability for the first time in March 2023. This profitability encompasses all corporate expenses,
excluding those related to employee stock ownership plans, as highlighted by Swiggy’s Co-founder and CEO Sriharsha Majety in a blog post.
Conclusion:
Invesco’s valuation markup underscores investor confidence in Swiggy’s potential and reflects positively on the company’s trajectory as it gears up for a transformative phase with its impending IPO.
With Swiggy joining the ranks of companies venturing into the public markets, the spotlight remains on its ability to sustain growth momentum and deliver value to stakeholders amidst evolving market dynamics.
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