US-based Baron Capital marks down Swiggy’s valuation by another 10%

US-based asset management firm Baron Capital has slashed foodtech major Swiggy’s valuation yet again by another 10 per cent effectively valuing the company at $6.5 billion as of March 31, 2023. The company has estimated the fair value of its stake in the company at about $45.76 million, according to the investor’s filings on the Securities and Exchange Commission (SEC).
 
This development has come weeks after it was reported that Baron Capital marked down the Bengaluru-based company’s valuation by 34 per cent to $7.3 billion as of December 2022. 
 
Baron Capital participated in an investment round in January last year when Swiggy raised $700 million. The fundraise was led by US-based investment firm Invesco and saw the participation of Baron Capital, Sumeru Venture, IIFL, among others. 
 
Baron apart, US-based Invesco also slashed Swiggy’s valuation to about $5.5 billion as per its recent filings. Despite the markdown, Swiggy on May 18 announced that it has turned profitable. 
 
The news was shared by the company's co-founder and CEO Sriharsha Majety, who announced it in a blog post on Thursday. He wrote, "This is a milestone for food delivery globally, not just for us, as Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than 9 years since its inception."
 
“This is a milestone for food delivery globally, not just for us, as Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than 9 years since its inception,” Majety wrote in the post. 
 
The CEO also factored the reasons that have led to the company hitting the profitability benchmark. “Our sharp focus on innovation, coupled with strong execution has led to yet another milestone- As of March 2023, Swiggy’s food delivery business has turned profitable (After factoring in ALL corporate costs; excluding employee stock option costs),” he said. 
 
In the coming times, Majety highlighted that the company’s aim is to penetrate deeper into the Tier II and III markets, keep exploring the unventured geographies and segments, and continue to take measures to fuel the growth of the food delivery industry.c

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