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The Swiggy IPO valuation got a major boost as US-based asset management company, Borron Capital marked up the fair value of Swiggy Investment to $109.2 Million on March 31, 2024. This is a jump from $87.2 million in the previous quarter. Based on Barron’s 2% stake, this brings Swiggy's valuation to $15.1 Billion, a 25% jump from the previous reported valuation of $12.1 Billion.
Swiggy Funding History
In the last four years, we saw 3 rounds of funding by Swiggy.
| Date of funding | Funding Amount | Round Name | Post money valuation | Revenue multiple | Investors |
|---|---|---|---|---|---|
| Aug 29, 2023 | $46.4M | Series K | - | - | P R Venketrama Raja, The Ramco Cements, Ramco Industries, Rajapalayam Mills. |
| Jan 24, 2022 | $700M | Series K | - | - | Invesco, Baron Funds, Sumeru Ventures, 360 One, Axis, Growth, Management, Kotak Mahindra Bank, Ghisallo Capital Management….. |
| Apr 05, 2021 | $1.25B | Series J | $5.25B | 15.0x | Prosus, SoftBank Vision Fund, Alpha Wave Global, Amansa Capital, Accel, Qatar Investment Authority, GIC, Naspers… |
On Jan 22, Swiggy raised $700 Million in a Series K funding led by Invesco. Asset Management Firm, Barron Funds participated in this round. This was the same round that turned Swiggy into Decacorn, a valuation of more than or equal to US $1 Billion.
Cut to the 2024 March quarter, Swiggy was one of the top 10 holdings in Baron Capital’s emerging markets fund. This fund has holdings like Samsung Electronics, Tencent Holdings, Alibaba Group with India’s Reliance Industries, and Bharti Airtel.
As per Tracxn.com, Dutch technology investor Prosus is the largest shareholder in Swiggy with a 32% stake. This includes other investors like SoftBank, Accel, and Elevation Capital.
The reason behind a 13% reduction in swiggy employee count?
In March 2023, Swiggy had around 5,600 employees. Later by March 24, they were reduced to 4654 employees, which is a 13% reduction. The actual reason behind this was that Swiggy is now a later-stage start-up trying to reduce its costs and cash burns.
To implement this step, Swiggy fired around 400 employees in the second round of layoffs on Jan 24, which is 7% of their workforce. This checked their costs and improved efficiency and profitability adding to Swiggy's valuation before its IPO.
Can Swiggy valuation stand the IPO test?
Currently, the Swiggy Share price is trading around Rs 350 per share in the unlisted market. This is a valuation of around $9-9.5 Billion. With this increase in valuation by the baron fund, we can expect an increase in the market valuation of Swiggy.
But with Zomato already listed in the share market, swiggy has little room for overvalued pricing. If Swiggy’s pricing is accurate and market sentiments are positive around IPO, it could be well oversubscribed. Zomato enjoys around 54% of the market share while Swiggy has around 46% market share.
How to Invest in Swiggy?
Swiggy shares are not yet listed but they are available in the unlisted share market. With a positive market sentiment and accurate pricing, we can expect swiggy shares to get oversubscribed in the IPO.
But you can gain even more by buying pre-IPO swiggy shares. Stockify curates insights for unlisted shares and helps you make better investment decisions and generate wealth through its trading platform.
Connect here to know more and gain more.
