New Delhi: US-based asset management company Baron Capital has increased the fair value of its stake in India's leading food delivery platform, Swiggy, by approximately 25 percent, in its latest quarterly report. The valuation now stands at Rs 7,981 crores as of March 31, up from Rs 6,385 crores in the previous quarter, reflecting a valuation of Rs 1.1 trillion ($15.1 billion) for Swiggy.
Swiggy emerged as one of the top ten holdings in Baron Capital's emerging markets fund for the March quarter, alongside industry giants like TSMC, Samsung Electronics, Tencent Holdings, and Alibaba Group. The investment firm reiterated its confidence in Swiggy's prospects, citing the company's dominant market share of approximately 45 percent in India's food delivery industry.
Baron Capital's valuation adjustment follows a similar move by fellow investor Invesco, who raised Swiggy's value by 19 percent to Rs 93,370 crores, marking the third consecutive markup by the investment firm. Both Baron Capital and Invesco participated in Swiggy's fundraising round of Rs 50,750 crores in January 2022, with each holding stakes of around 2 percent. Baron Capital had initially invested Rs 5,619 crores in the round as a fresh investor.
Despite the significant valuation increase, Swiggy's latest valuation of Rs 1.1 trillion ($15.1 billion ) still falls short of its listed rival Zomato, which boasts a valuation of nearly Rs 1.4 trillion ($18.6 billion). However, Baron Capital's continued confidence in Swiggy reflects optimism about India's burgeoning food delivery market, driven by factors such as a growing middle class, rising disposable income, and a tech-savvy younger population.
ALSO READ: Hemanta Bhuiyan, from Assam's Rangia is achieving artisanal excellence despite odds
FIRST Business Portal addressing the potential of business capability of North East Region.
