US-based Invesco cuts valuations of its stake in Pine Labs and Zomato rival Swiggy

US-based investment management company Invesco has recently adjusted the valuations of its stakes in two major Indian firms, Pine Labs and Zomato rival Swiggy. 

According to Invesco's half-yearly report, the firm's stake in the fintech firm Pine Labs and the food delivery giant Swiggy has seen a reduction in fair value.

The revaluation reflects the current market conditions and the financial performance of both companies as they prepare for their respective initial public offerings (IPOs).

How did Pine Labs' valuation change?

Invesco cut the fair value of its stake in Pine Labs from $58 million in January to $52 million in April 2024.

Pine Labs, led by Amrish Rau, had raised $150 million from Alpha Wave in 2022, valuing the company at $5 billion. Invesco joined Pine Labs in 2021 with a $100 million investment. 

Despite a 37% increase in operating revenue to Rs 1,280.5 crore for the financial year ending March 2023, the company faced rising losses, which grew from Rs 22.6 crore to Rs 56 crore in FY23. This financial strain and the company's strategic shifts, including a court-approved merger of its Singapore and Indian entities, influenced the revaluation.

Marginal decline in stake in Swiggy

Invesco marginally cut the fair value of its stake in Swiggy from $220 million in January to $219 million in April 2024. Invesco initially joined Swiggy's $700 million funding round in 2022, which valued the startup at $10.7 billion.

This slight reduction in valuation comes as Swiggy, co-founded by Sriharsha Majety, Rahul Jaimini, and Nandan Reddy, gears up for its IPO. Swiggy's early investors, including Prosus and Baron Capital, have also made adjustments to their valuations. 

Baron Capital recently increased Swiggy's valuation to $15.1 billion, ahead of the company's confidential filing for a $1.25 billion IPO with the Securities and Exchange Board of India (SEBI).

Notably, Pine Labs is considering an IPO that could raise up to $1 billion at a valuation exceeding $6 billion. Swiggy, on the other hand, has already confidentially filed for a $1.25 billion IPO.