US-based Baron Capital values Zomato rival Swiggy at $15.1 Billion

US-based asset manager Baron Capital has marked up the valuation of Swiggy to $15.1 billion, according to regulatory filings with the US Securities and Exchange Commission (SEC).

The revision, as of March 31, represents a significant jump from Baron’s previous valuation of $12.2 billion.

This 24% increase brings Swiggy's valuation closer to that of its rival, Zomato, which recently achieved a market capitalization of around $19 billion, even surpassing $20 billion at its peak.

Swiggy's upcoming IPO

Swiggy is reportedly preparing for an initial public offering (IPO) later this year. Notably, the foodtech major has filed confidential papers with the Securities and Exchange Board of India (SEBI).

According to media reports, It has received shareholders' approval for a $1.25 billion IPO. 

According to regulatory filings, Swiggy plans to raise up to Rs 3,750 crore (around $450 million) through a fresh issue and up to Rs 6,664 crore (around $800 million) through an offer-for-sale (OFS) component. Additionally, the company aims to secure around Rs 750 crore from anchor investors ahead of its IPO.

Is Swiggy profitable?

Unlike Zomato, which reported a Rs 175 crore profit in Q4 FY24, Swiggy continues to struggle with profitability.

The company reported revenue from operations of Rs 5,476 crore and a loss of Rs 1,600 crore for the first three-quarters of FY24. In FY23, the company's revenue was Rs 8,265 crore, with losses totalling Rs 4,179 crore