Baron Capital, a US-based asset management firm, has reduced Swiggy’s valuation by 10%, thereby valuing the company at $6.5 billion as of March 31, 2023. According to investor filings with the Securities and Exchange Commission (SEC), the corporation estimates the fair value of its ownership in the company to be around $45.76 million. This news comes only weeks after it was revealed that Baron Capital has reduced the Bengaluru-based company’s valuation by 34% to $7.3 billion as of December 2022.
Swiggy raised $700 million in a financing round led by Baron Capital in January of last year. Invesco, a US-based investment firm, led the fundraise, which included participation from Baron Capital, Sumeru Venture, and IIFL, among others. Aside from Baron, Swiggy’s valuation has been reduced to around $5.5 billion in recent filings by US-based Invesco. Despite the price cut, Swiggy stated on May 18 that company had become profitable. Sriharsha Majety, the company’s co-founder and CEO, announced the announcement in a blog post on Thursday.
Swiggy’s valuation
“This is a milestone for food delivery globally, not just for us,” he added, “as Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than 9 years since its inception.” “This is a milestone for food delivery globally, not just for us,” Majety wrote in the post. “Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than 9 years since its inception.” The CEO also discussed the factors that led to the company meeting its profitability target.
The CEO also discussed the factors that led to the company meeting its profitability target. “Our sharp focus on innovation, coupled with strong execution, has resulted in yet another milestone- As of March 2023, Swiggy’s food delivery business has turned profitable (after factoring in ALL corporate costs; excluding employee stock option costs),” he stated. Majety stated that the company’s goal in the future is to enter deeper into Tier II and III markets, continue to explore unexplored areas and categories, and continue to take measures to fuel the expansion of the food delivery industry.
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