The increase in valuation for Swiggy comes ahead of its much anticipated Rs 10,000 crore IPO.
Swiggy has seen its valuation increase to $13.3 billion by Invesco, a US-based asset management firm, ahead of its initial public offering (IPO).
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This marks the fourth time in the past year that Invesco has adjusted Swiggy’s valuation upward. In August, another US investor, Baron Capital, valued the company even higher at $14.74 billion as of June 2024.
Swiggy’s updated valuation comes as the company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi).
The company plans to raise Rs 3,750 crore through a fresh issue of shares and an offer for sale of up to 18.52 crore shares. In total, the IPO could amount to around Rs 10,414 crore, or $1.25 billion.
There are plans to increase the IPO size by an additional Rs 1,250 crore, which is about $150 million. If approved, this would bring the total IPO size to Rs 11,664 crore, or $1.4 billion. The decision regarding this increase will be made at the company’s extraordinary general meeting (EGM) on October 3.
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Swiggy’s financial performance shows some encouraging signs. For the financial year 2024 (FY24), the company reduced its losses by 44%, down to Rs 2,350 crore from Rs 4,179 crore in the previous year (FY23). During the same period, Swiggy’s revenue grew by 36%, reaching Rs 11,247 crore, up from Rs 8,265 crore.
However, in the first quarter of the financial year 2025 (Q1 FY25), Swiggy reported a slight increase in losses, which rose by 8% to Rs 611 crore, compared to Rs 564 crore in the same quarter of the previous year.
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This increase in losses was attributed to rising expenses. On a positive note, the company’s revenue from operations during this period was Rs 3,222.2 crore, marking a 35% increase from Rs 2,389.8 crore in Q1 FY24.
Swiggy operates in a competitive market, with many other food delivery services also vying for customers. The company has been focusing on expanding its services beyond food delivery into quick commerce, where it aims to deliver groceries and other items quickly.
