Online food delivery company Swiggy has received a great update ahead of the proposed IPO. The value of the company preparing to bring its first issue to the market has increased. This has reduced the gap between Swiggy and its competitor, Zomato, and it can also benefit from this in the upcoming IPO.
American money manager firm Baron Capital has increased Swiggy’s valuation. He has increased the value of his stake in Swiggy to $87.2 million. Baron Capital’s increase in its stake has indirectly led to an increase in Swiggy’s valuation. Now, the value of the company has crossed 12.16 billion dollars. Baron Capital has decided the valuation based on data as of December 31, 2023.
The Value Is So Less Than Zomato
This is no less than good news for Swiggy, which has been trying to find an IPO for a long time. Swiggy’s competitor Zomato, is far ahead of Swiggy regarding market cap.
According to the report published in Moneycontrol, Zomato’s market cap is currently around $17 billion, i.e., Rs 1.39 lakh crore. The company’s shares have registered an increase of 58 per cent in the last six months. Zomato’s e-commerce platform Blinkit is also important in increasing the company’s profit.
Swiggy Laid Off Twice
Due to increasing pressure in the market, Swiggy has gone through difficult times in recent times. The company has done layoffs twice last year to increase profits by reducing expenses. The company had laid off 400 employees to reduce its expenses. In January 2023, 380 employees were also fired by the company. Currently, 6000 employees are working on Swiggy’s payroll.
