The Quarterly Report of Baron Capital Marks Swiggy at a Valuation of $15.1 Billion

Baron Capital is an asset management company that has provided growth equity solutions since 1982. Founded in New York, the firm holds its value in long-term investments and, equity research, marks the core of the company. The firm believes people to be the biggest asset to a company and therefore have a history of investing in companies with strong management teams with credible and trustworthy leadership.

About Swiggy:

Swiggy Limited operates as an online food delivery platform in India. Headquartered in Bengaluru, the company was founded by Sriharsha Majety and Nandan Reddy along with Rahul Jaimini in 2014. Since then, its services have expanded as the platform now provides on-demand grocery deliveries under Instamart and a same-day package delivery service, Swiggy Genie. 

Financials:

Swiggy currently operates in more than 580 cities and employs 6000 people as of 2023. Swiggy’s operating revenue in FY23 marked a 40% YoY growth with the total value at Rs. 8,264.4 Cr. Meanwhile, it also incurred a net loss of  Rs. 4,179.3 Cr. in FY23. But the losses didn’t stop the growth of the company and Swiggy filed its 10,400 crore public issue to enter the IPO Market through SEBI’s confidential route.

Baron Capital’s Investment 

Baron Capital has a history of investment with Swiggy. Its first investment with Swiggy amounted to $76.7 Million in January 2022. As of March 2024, Swiggy is among the top 10 holdings of the investment firm. The firm has reported Swiggy’s market share in India to be 45% in food-delivery platform services. Based on Baron Capital’s March quarterly report it has now increased the fair value of its stake in Swiggy by 25%QoQ to $109.2Million.

Conclusion: With a 25% increase in the investment by Baron Capital, the food-delivery platform now enjoys a valuation of $15.1 Billion, a 25% QoQ increase from Baron’s previous valuation of $12.1 billion.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.