Invesco raises valuation of its stake in IPO-bound Swiggy to $13.3B
The US-based investor had paid about $190.5 million for the stake when it invested in a $700 million funding round in Swiggy in January 2022, valuing the company at $10.7 billion.
has raised the fair value of its stake in by 25%, reflecting the valuation it expects for the foodtech company that filed for an IPO last week.
The US-based asset manager, which holds a 2% stake in Swiggy, valued its 28,844 shares at $237 million as of July, effectively valuing the company at $13.3 billion, a filing with the Securities Exchange Commission (US SEC) showed.
Invesco had paid about $190.5 million for the stake when it invested in a $700 million funding round in Swiggy in January 2022, valuing the company at $10.7 billion.
Its recent decision to raise the fair value of its stake in Swiggy signifies a change in public market perceptions regarding quick commerce and last-mile delivery services, fueled by a notable surge in demand within the sector. This positive outlook has also influenced Swiggy's primary rival, , which recently surpassed a market capitalisation of $30 billion.
Since the past year, Invesco has revised the fair value of its stake in Swiggy nearly every quarter, previously lowering its valuation to just $5.5 billion in May 2023.
The foodtech startup recently filed its IPO papers, aiming to raise Rs 3,750 crore through a new issue, in addition to an offer for sale (OFS) of 18.52 crore shares from current shareholders, as stated in the company's draft red herring prospectus (DRHP). In August, YourStory reported that Swiggy might eye a valuation of around $15 billion in the IPO.
Among the shareholders divesting their stakes, Elevation Capital plans to sell 739,600 shares, Accel India will offer 1.05 crore shares, DST EuroAsia is set to sell 560,000 shares, and Inspired Elite Investments will divest 670,000 shares.
MIH India Food (Prosus), the largest seller in the offering, will sell 11.8 crore shares.
Other shareholders participating in the sale include Tencent Cloud Europe, Norwest Venture Partners VII, Coatue PE Asia, and Alpha Wave Ventures. Meanwhile, Japan’s Softbank will not be selling shares in the company’s public issue.
According to the company's DRHP, Swiggy clocked Rs 3,222.21 crore in revenue from operations in the first quarter, a 34.8% increase from Rs 2,389.81 crore reported a year ago. However, its losses widened by 8.31% to Rs 611 crore.
In contrast, Swiggy's biggest rival Zomato clocked a 74% jump in its operating revenue to Rs 4,206 crore during the period. The Deepinder Goyal-led firm recorded a profit of Rs 253 crore, marking the company's fifth straight profitable quarter.
Edited by Suman Singh