[ad_1]

Baron, a US-based fund manager, has revised the value of its stake in Swiggy to USD 87.2 million, indicating a valuation of USD 12.16 billion for the hyperlocal commerce unicorn as it gears up for its reportedly upcoming initial public offering (IPO), as per a report by Moneycontrol.

Mint reported earlier this year that Invesco, a US-based asset management company (AMC), increased Swiggy’s valuation to USD 8.3 billion two times in a row.

The valuation adjustment for Swiggy by Baron comes amidst the backdrop of its competitor, Zomato, witnessing around a 58 per cent surge in stock price over the last six months, fueled by improved profitability and rapid growth of its quick commerce arm, Blinkit. Zomato’s current market capitalization stands at 1,41,072.44 crore, as per BSE.

Baron’s reassessment of Swiggy’s value, as of December 31, 2023, coincides with Zomato’s market capitalization reaching USD 13 billion ( 1.07 lakh crore).

Despite Swiggy’s revenue climbing by 45 per cent to 8,625 crore in FY23, its net loss widened to 4,179 crore. This was a significant increase from the previous financial year’s revenue of 5,705 crore and a net loss of 3,629 crore, as per the Moneycontrol report.

Also Read | IRCTC joins hands with Swiggy for pre-ordered meal delivery; service to be available at 4 railway stations. Details here

Mint in February reported that Zomato’s financial results for the October-December quarter of fiscal 2023-24 (Q2FY24), showcased a consolidated net profit of 138 crore. This marks a significant turnaround from the net loss of 347 crore recorded in the same period last year. The online food delivery platform has now achieved profitability for the third consecutive quarter. Additionally, Zomato reported a substantial increase in revenue from operations for the third quarter of the current fiscal, reaching 3,288 crore. This represents a notable growth rate of 69 per cent compared to the 1,948 crore revenue recorded in the corresponding period last year.

Also Read | Swiggy partners IRCTC to provide food delivery service on Indian Railways

Additionally, the food delivery platform Swiggy unveiled a collaboration with the Indian Railway Catering and Tourism Corp (IRCTC) to provide pre-ordered meals to travellers at four prominent railway stations across India. This move aligns Swiggy with its competitor Zomato, which already offers a similar service, as Mint reported on March 5.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.

More
Less

Published: 10 Mar 2024, 09:36 AM IST

[ad_2]

Source link