With so much talk centering around a planned Swiggy IPO, another recent happening has brought renewed focus on the company. Invesco, which had led the investment for a $700-mn round in Swiggy in 2022 at a valuation of $10.7 bn, has pushed up the same by 19% as high as $12.7 bn as per regulatory filings. Reportedly, this is the third time on the go that Invesco has marked up Swiggy’s valuation, MoneyControl reported. In fact, the last time round it was marked up at $8.3 billion, which was back in October 2023. Swiggy is one of the top food delivery companies in India.
Another investor, Baron Capital had valued Swiggy at $12.2 billion as recently as in March 2024.
All of this comes quick on the heels of a Reuters report, citing internal documents, that said Swiggy reported significant losses in recent periods, including a $200 million loss for the nine months up to December 2023.
It added that despite these losses, Swiggy is considering IPO by the end of the current year and that too likely backed by SoftBank.
What is driving the mood is the highs that the Indian stock market is hitting even though concerns have been expressed about high valuations of startups that have not turned a profit.
Notably, Swiggy reported a $500 million loss for the full fiscal year 2022-23. To slash the losses, measures that have been eyed are lower wage payouts and cuts in marketing spending.
Swiggy’s losses, as per Reuters, for April to December 2023 were 17.3 billion rupees ($207 million) with $1.02 billion revenue during the same period, slightly lower than the previous year.
At the same time, Swiggy has been branching out into areas beyond meal deliveries into groceries and restaurant bookings to boost revenues.
Other Indian startups’ stock market performances have varied, what with Paytm seeing a share value drop, while Zomato has seen a surge after quarterly profits.
Needless to say, investors and industry observers would be monitoring Swiggy’s strategies for growth and profitability even more now simply due to its IPO plans.
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