Invesco slashes valuations of its stake in Pine Labs and Swiggy
Invesco’s cuts comes amid other valuation changes by investors as startups move towards their public listing plans.
US-based investment management company on Thursday cut the fair value of its stake in fintech firm and food tech giant , the company’s half-yearly report revealed.
Invesco clocked the fair value of its stake in Amrish Rau-led Pine Labs at $58 million in January, cutting it to $52 million in April 2024. The payment services provider had raised $150 million from Alpha Wave back in 2022 in a round that valued the company at $5 billion. Invesco joined Pine Labs in 2021 when it raised $100 million in a round led by Invesco Developing Markets Fund.
The company logged a 37% jump in operating revenue to Rs 1,280.5 crore in the financial year ended March 2023 from Rs 932 crore reported a year ago. However, topline growth accompanied inflating losses, where the point-sale machine seller witnessed a 2.5X rise in losses—from Rs 22.6 crore to Rs 56 crore in FY23.
In May, Pine Labs received approval from a Singapore court to merge its Singapore-based entity, Pine Labs Limited, with its Indian company, Pine Labs Private Limited, joining the line of new-age startups vying to shift their bases from domestic territory. According to media reports, Pine Labs was also mulling an IPO of $1 billion at a valuation of more than $6 billion in India, in transactions involving both a primary capital raise and secondary share sale.
Invesco also marginally cut the fair value of its stake in Swiggy from $220 million in Jan to $219 million in April 2024. Invesco joined Swiggy in 2022 in a $700 million funding round that valued the food delivery startup at $10.7 billion, according to media reports.
These developments come after Prosus, one of the early investors in the food delivery firm, said its stake in Swiggy marginally depreciated to 32.65% in 2024 from 32.83% in 2023. In June, Baron Capital, another investor in the company, marked up Swiggy’s valuation to $15.1 billion ahead of the company’s IPO plans.
Swiggy has confidentially filed for a $1.25 billion IPO with the Securities and Exchange Board.
Edited by Jyoti Narayan