Swiggy's initial public offering (IPO) valuation has been boosted to $8.3 billion by US-based asset management firm Invesco, which owns approximately 2% of the company. According to AMC's regulatory filings, Invesco's 28,844 shares in the food delivery service were worth $147.6 million at the end of October, translating to a $8.3 billion valuation, according to a report on Thursday.
Invesco has increased Swiggy's valuation for the second time in a row. Swiggy's valuation had increased by 42% to $7.85 billion by October 2023, according to Invesco. Moneycontrol said that the 2023 valuation came after two consecutive cuts.
Swiggy's valuation was reduced by Invesco to $8 billion in April 2023, from $10.7 billion, after global tech markets plummeted. Following that, Invesco reduced Swiggy's valuation once more, as corporations and investors acknowledged that the meal delivery market was weakening. As a result, Swiggy was valued at $5.5 billion by Invesco. That was roughly half of Swiggy's $10.7 billion valuation when it raised funds in January 2022.
Swiggy's valuation has been changed in recent months by other investors, including US-based Baron Capital. In March 2023, Baron had decreased Swiggy's fair value by over 40%, pricing it at $6.5 billion.
Swiggy's fair value was then increased by more than 30% in June 2023, effectively valuing it at $8.5 billion.
According to media sources, Swiggy is considering a public market debut in 2024 and hopes to raise $1 billion through the IPO.
It was previously rumored that the Softbank-backed company has likely picked Kotak Mahindra Capital, Citi, and JP Morgan for top roles in the IPO deal.
Swiggy, based in Bengaluru, has the second-largest market share in the food delivery industry. The company also provides grocery delivery service.
Swiggy selected former Diageo India managing director and chief executive Anand Kripalu as an independent director and chairman of the board last month. Swiggy had previously nominated three independent directors ahead of its expected IPO in 2024. As independent directors, Delhivery founder and CEO Sahil Barua, TAFE chairman and managing director Mallika Srinivasan, and Shailesh Haribhakti & Associates chairman Shailesh Haribhakti were appointed in February.
