New Delhi, March 8 US-based Baron Capital has increased IPO-bound online food delivery platform Swiggy's valuation to $12.16 billion, higher than the $10.7 billion post-money valuation at which the company secured funding in early 2022.
In its new filings, Baron Capital mentioned that it had increased the value of its share in Swiggy to $87.2 million, up from its original $76.7 million investment in the company, reported TechCrunch on Friday.
The investment firm wrote in a separate filing that "Swiggy commands roughly 45 per cent market share in the Indian food delivery sector and is well positioned to benefit from structural growth in online food delivery in India".
"We believe India’s food delivery industry is still in its infancy and will continue to scale over the next several years thanks to a growing middle class, rising disposable income, higher smartphone penetration, and structural shifts in consumer preferences driven by a tech-savvy, younger population," it added.
Last year, Baron Capital reduced the fair value of Swiggy by an additional 10 per cent.
This has resulted in the company's valuation being estimated at $6.5 billion as of March 31, 2023. Earlier this year, US-based investment company Invesco raised Swiggy's valuation to about $8.3 billion. This was the second consecutive time the global asset management company has increased Swiggy's value.
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