Baron Capital, a US-based investment firm, has significantly boosted the valuation of Swiggy, the online food delivery platform set to go public, to $12.16 billion. This surpasses the $10.7 billion post-money valuation obtained by the company during its funding round in early 2022. According to reports from TechCrunch, Baron Capital disclosed in recent filings that it has upped the value of its stake in Swiggy to $87.2 million, marking a substantial increase from its initial investment of $76.7 million.
In its filings, Baron Capital highlighted Swiggy's dominance in the Indian food delivery landscape, commanding approximately 45 percent market share. The investment firm expressed confidence in Swiggy's prospects, emphasizing its advantageous position to capitalize on the structural growth within India's online food delivery sector.
The firm articulated its bullish outlook on the industry, citing the nascent stage of India's food delivery market and foreseeing continued expansion over the coming years. Factors such as the burgeoning middle class, escalating disposable incomes, widespread smartphone usage, and evolving consumer preferences influenced by a tech-savvy youth demographic contribute to this optimistic projection.
Notably, Baron Capital had previously devalued Swiggy by 10 percent in the previous year, resulting in a valuation of $6.5 billion as of March 31, 2023. Conversely, Invesco, another US-based investment entity, raised Swiggy's valuation to approximately $8.3 billion earlier this year, marking the second consecutive increase in value by the global asset management company.
Read also | Tata Sons Could Attain Valuation of Rs 7.8 Lakh Crore Upon Listing
Read also | Gold Prices Reach New Record Peak: Surges Rs 800 to Rs 65,000 per 10 Grams
