Swiggy: US investor Invesco increases Swiggy’s fair value and reduces Pine Labs’ valuation

A fund managed by a US-based investor. Invesco increased the fair value of online public markets destined food delivery company drink on its books to $13.3 billion as of July 31, according to a regulatory filing filed with the U.S. Securities and Exchange Commission. At the same time, the investor reduced the valuation from the fintech company pine labs to 3.3 billion dollars.

The valuation attributed to Swiggy by Invesco was 24% higher than the $10.7 billion value the asset management company invested in the company in January 2022. As of April 30, Invesco valued Swiggy at $12.7 billion .

Invesco does not participate in the offer for sale (OFS) component of Swiggy Upcoming Initial Public Offering (IPO). The Bengaluru-based company has filed an updated red herring prospectus for its public issue through which it seeks to raise Rs 3,750 crore in fresh capital and OFS of up to 185.3 million shares.

Crossover funds, which invest in both publicly traded companies and private companies, periodically review the valuation of the companies in their portfolio. Fair value is determined based on a number of factors, including the stock market performance of comparable peers.

The rival listed on Swiggy Zomato has witnessed an uptick in its market capitalizationwhich has almost tripled in the last year to reach 30,000 million dollars.

On July 31 (when Invesco marked Swiggy’s valuation at $13.3 billion), Zomato’s market capitalization was $24.1 billion.

According to stock market analysts, the increase in Zomato’s market capitalization has come about thanks to the growth of its fast trade Blinkit, which rivals Swiggy’s Instamart, as well as Nexus Venture Partners-backed Zepto and Tata Digital-owned BigBasket.

In a research note on September 3, brokerage firm CLSA said Blinkit had a 39% market share in the fast trading segment, followed by Zepto and Instamart with 28% each. BB from BigBasket now and Flipkart minutes of the last participant together they had a 6% share of India’s 10-minute delivery market.

In terms of financial metricsSwiggy has also been left behind Zomato in its core food delivery and fast commerce segment, ET reported on September 27.

For the current financial year, Swiggy Instamart has a gross order value (GOV) run rate of $1.3 billion, compared to Blinkit’s run rate of over $2 billion and Zepto’s run rate of $1.5 billion.

In the food delivery segment, the largest revenue-generating vertical for both companies, Swiggy lags behind Zomato, with the IPO-bound company posting Rs 6,808 crore in GOV. Its listed rival recorded Rs 9,264 crore from the government for food delivery during the April-June period.

Online publication TechCrunch was the first to report on Invesco’s review of Swiggy’s valuation.

pine labs

Invesco lowered Pine Labs’ valuation for the third consecutive quarter, to $3.3 billion as of July 31 from $3.5 billion as of April 30, $3.8 billion as of January 31, and $4.8 billion as of December 31, 2023. .

The payments company, which primarily deploys point-of-sale solutions at offline merchants, had last raised $150 million from Alpha Wave in 2022. After the fundraising, it was valued at $5 billion .

Invesco currently owns about 2.8% of Pine Labs, while Baron Capital owns about 1.3%. Peak XV Partners, the original investor in the company, now holds about 20.6%, Tracxn data showed.

The company is in the process of moving its headquarters to India from Singapore, after receiving court approval in May to merge its city-state entity with the national one. In this regard, it is seeking necessary clearances from the National Company Law Tribunal.

ET first reported on March 20 on Pine Labs’ filings in India and Singapore for a reverse merger.