Baron Capital marks up Swiggy valuation by 25% to $15.1 billion

A fund managed by US-based asset manager Baron Capital has marked up the valuation of food and grocery delivery platform Swiggy to $15.1 billion, a jump of 25% from the last fair value recorded by the investor, according to regulatory filings with the US Securities and Exchange Commission (SEC).

The latest valuation ascribed to the Bengaluru-based company, which has filed draft papers for an initial public offering (IPO), is as of March 31. As of December 31, 2023, Baron Capital valued Swiggy at $12.1 billion.

Crossover funds, which invest both in publicly traded and privately held companies, periodically review the valuation of their portfolio companies.


The fair value is ascertained on the basis of a number of factors, including the stock market performance of comparable peers.

Baron Capital, which participated in Swiggy’s $700 million funding round in January 2022 at a valuation of $10.7 billion, has raised the fair value of its holding in Swiggy for the fourth straight time.

A spokesperson for Swiggy did not immediately comment on the development.

Between December 31, 2023 and March 31, 2024 the market capitalisation of Swiggy’s listed rival Zomato increased 47% to $19.1 billion.

Besides Swiggy, Baron Capital has also revised the valuation of Bengaluru-based Byju's. The US investor valued the edtech firm at $24 million as of March 31 this year, 99% lower from the valuation at which it invested. This is in line with Byju's plans to raise $200 million through a rights issue at a 99% valuation cut from its peak of $22 billion.

IPO plans

On April 24, ET broke the news that Swiggy has secured a nod from its shareholders for a $1.25 billion IPO.

The company subsequently filed its draft paper with Securities and Exchange Board of India (Sebi) through the Indian markets regulator’s confidential filing route.

According to the proposal cleared by Swiggy’s shareholders, the company is looking to raise Rs 3,750 crore ($450 million) in fresh capital through the IPO, which will also include an offer-for-sale component of up to Rs 6,664 crore ($800 million).

In the run up to its public offering, Swiggy has been cutting down on its spending while increasing focus on profitability.

This has resulted in the company shuttering several experimental initiatives, in addition to laying off staffers. This includes laying off 6% of its workforce back in January, impacting 350-400 positions in departments such as technology, call centres, and corporate functions.

Market scenario

Swiggy’s largest shareholder, Prosus, had reported back in December that Swiggy’s loss narrowed 35% from a year ago to $208 million for the half year ended September 30, 2023.

In addition to food delivery—where industry executives estimate Zomato has a lead—the two companies also compete in the fast-growing quick commerce space. Swiggy operates the Instamart platform while Gurgaon-based Zomato owns Blinkit.

Nexus Venture Partners-backed Zepto, which is looking to raise $300 million from global investors—as reported by ET on April 2—has also made rapid strides in the quick commerce space.

In April, a Goldman Sachs report had estimated that Blinkit’s contribution to parent Zomato’s market value has surpassed that of the mainstay food-delivery business.