Baron Capital Boosts Swiggy's Valuation to $12.1 Billion with 13% Markup

As of December 31, the US-based asset management business Baron Capital increased the fair value of its ownership in Swiggy, a food delivery platform, by over 17% to $87.2 million from $74.7 million in the prior quarter,

According to its most recent quarterly report. Since it last received money in 2022, Swiggy's valuation has increased to $12.1 billion, a 13% increase from $10.7 billion.

Swiggy Dominates: Leading Player in India's Food Delivery Sector

Baron Capital's developing markets fund includes Alibaba Group, Samsung Electronics, Tencent Holdings, Taiwanese chipmaker TSMC, India's Bajaj Finance, HDFC Bank, and Bharti Airtel, among other companies.

In the December quarter, Swiggy was among the top 10 holdings in the fund.

Approximately 50% of the Indian food delivery industry is occupied by Swiggy, which is benefiting from rising food delivery penetration and rising profitability, according to a previous quarterly filing from Baron Capital.

As per the firm's statement, "We think the food delivery sector in India is just getting started and will keep growing in the coming years due to factors like an expanding middle class, increasing disposable income, increased smartphone usage, and a shift in consumer preferences caused by younger, tech-savvy consumers."

In addition to Baron Capital, Invesco, Swiggy's other investor, increased the company's valuation lately, bringing it to $8.5 billion as of October 31 from $7.8 billion in July.

Before that, in January 2023, Swiggy's valuation was reduced by Invesco from $8.2 billion in October 2022 to $5.5 billion.

"Swiggy's Funding Boost: $700 Million Investment from Invesco and Baron Capital"

In January 2022, Swiggy raised $700 million in funding, with participation from Invesco and Baron Capital. Baron Capital invested $76.7 million for a 1.9% stake in that transaction, becoming a new investor.

From Rs 5,705 crore in the previous year to Rs 8,264.6 crore in FY23, Swiggy's operating revenue increased by over 45%. Moreover, its losses for the year rose by 15% to Rs 4,179 crore from  Rs 3,629 crore in FY22.

Byju's shrinkage

Baron Capital reduced the fair value of its stake in the struggling edtech company Byju's by 66.4%, from $45.9 million to $15.4 million as of December 31.

Through the Baron Global Advantage Fund and the Baron Emerging Markets Fund, two of the asset manager's funds, it had made an investment in the business in 2021.

According to Baron Capital's analysis, "Weak performance was driven by a marked slowdown in business momentum as Covid-related tailwinds that benefited online/digital education have begun to dissipate."

In addition, the departure of the company's auditor, Deloitte, and three investor-appointed directors in June had an effect on the company's fair market value. During the previous year's June quart