food delivery app swiggy, is preparing to launch an initial public offering (IPO). According to the information received, the company may launch its IPO at the end of this year. Before this, the company is starting preparations to raise funding. The company is offering high net worth individuals (HNIs) to buy its shares at a price 20 percent lower than its current valuation. According to the report, Swiggy’s appointed financial advisors are valuing each share at ₹350, which would give the company a market cap of ₹80,000 crore.
The market cap of the company has been estimated at this much
Earlier, US-based asset management company (AMC) Invesco has raised the valuation of Swiggy by 19 per cent to $12.7 billion ahead of its anticipated IPO, according to regulatory filings. Invesco had led a $700 million funding round for the food delivery startup in January 2022, valuing it at $10.7 billion. Subsequently, Baron Capital, an investor in the company, valued Swiggy at $12.2 billion by March 2024, giving a significant boost to the startup gearing up for an IPO.
Zomato plans to increase its market cap again and again
Due to the support the company is receiving from investors, Swiggy’s valuation is coming closer to its rival Zomato. On Wednesday, April 10, Zomato shares closed at ₹197.30 on the NSE. In intraday trading, it hit a record high of ₹199.60, almost touching the psychological threshold of ₹200. According to an internal company document, Swiggy suffered a loss of $200 million during the nine months ending December 2023. The document also reveals that for the full financial year 2022-23, Swiggy recorded a loss of ₹41.8 billion ($500 million). However, the company is projected to narrow losses for financial year 2023-24 through lower salary payments and lower marketing spend.
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