Swiggy to reach $10 Billion valuation following new financing round

Swiggy, one of India's leading online food ordering and delivery platform, is all set to complete a new financing round of about $500-$600 million that is led by Invesco, an American independent investment management company.

The move is estimated to propel the valuation of the online food delivery to around $10 billion, making the company double its valuation compared to a few months ago.

If the deal succeeds, Swiggy will be notified among India's most esteemed privately owned startups after fintech major Paytm and edtech major Byju's, which are all set to go public during the last quarter of 2021.

Swiggy's fresh funding comes soon after its arch-rival Zomato's successful IPO, and is being viewed as a re-rating exercise for the Bengaluru business, which is now valued at $5.5 billion.

As per sources, Invesco will invest roughly around $150-$200 million. However, the standing investors in Swiggy like Falcon Edge, SoftBank Vision Fund, Prosus (formerly Naspers) will invest the remaining capital.

Not long ago, Invesco led a $100 million fundraising in PineLabs, an enterprise-focused payments platform on the verge of going public.

According to reports, Invesco's interest indicates that Swiggy may be considering a public offering in the following years. The fund is looking for possibilities in India's fast-growing technology industry.

Other hybrid funds (those that invest in both public and private markets), such as Fidelity, T Rowe Price, and Ballie Gifford, have been betting on major Indian internet giants, especially in the last year, as a slew of local businesses has lined up to tap the capital markets.

It is assumed that as a direct competitor to Zomato and a close competitor in terms of market share, Swiggy appears to be undervalued.

Sources cite that Zomato's stock closed at Rs 143.55 on Monday, up roughly 5% on the BSE, with a market capitalization of approximately $15.16 billion (Rs 1.12 lakh crore).

Source Credit - https://economictimes.indiatimes.com/tech/startups/invesco-in-talks-to-invest-in-swiggy-at-10-billion-valuation/articleshow/86566792.cms