US-based asset manager Baron Capital Group has marked up the valuation of Swiggy to $15.1 billion, higher than the $12.1 billion estimated as of December 2023, according to regulatory filings with the US’ Securities and Exchange Commission (SEC). This marks a nearly 25 per cent jump in the company’s valuation.
Baron has now marked up the fair value of its holding in Swiggy for the fourth consecutive time.
This comes after Swiggy filed draft documents for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). Swiggy’s shareholders approved a proposal for a $1.25 billion public issue.
Swiggy is looking to raise ₹3,750 crore ($450 million) in fresh capital through the IPO, which will also include an offer-for-sale component of up to ₹6,664 crore ($800 million).
In the run-up to its IPO, Swiggy has been cutting down on its spending while increasing its focus on profitability.
The company has announced that it will be laying off 6% of its workforce back in January, impacting 350-400 positions in departments such as technology, call centres, and corporate functions.
Swiggy’s food-delivery business is profitable but has still been burning cash on Instamart, its grocery unit. The company is optimising on all fronts to cut costs and showcase better financials before approaching the public markets.
Swiggy’s largest shareholder, Prosus, had reported back in December that Swiggy’s loss narrowed 35% from a year ago to $208 million for the half year ended September 30, 2023.
Inputs by bl intern Vidushi Nautiyal