Invesco lowers fair value, cutting Swiggy and Pine Labs valuations

US-based investor Invesco valued its 28,844 shares in Swiggy at $219.2 million, implying a total valuation of $12.3 billion, down from $12.7 billion in January 2024

US-based investor Invesco has reduced the fair value of fintech company Pine Labs and food delivery firm Swiggy in its latest half-yearly shareholder report filed with the US Securities and Exchange Commission (SEC). This valuation came ahead of Swiggy’s anticipated $1.25 billion initial public offering (IPO).

As of April 2024, Invesco valued its 28,844 shares in Swiggy at $219.2 million, implying a total valuation of $12.3 billion for the foodtech major. The adjustment represents a slight decrease from Invesco’s previous valuation of Swiggy at $12.7 billion in January 2024.

Meanwhile, Baron Capital, another US-based asset manager, had increased Swiggy’s valuation to $15.1 billion as of March 2024.

Invesco also revised its valuation of Pine Labs, pegging the fintech company at $3.5 billion as of April 30, 2024, down from $3.8 billion in January 2024 and $4.8 billion in December 2023. Invesco holds approximately 2.8 per cent of Pine Labs, while Baron Funds owns around 1.3 per cent and Peak XV Partners holds about 20.6 per cent, according to data from Tracxn.

Pine Labs, which is currently undergoing a reverse flipping process, received court approval in May to merge its entity in the city-state with its domestic counterpart. This structural reorganisation is seen as a strategic move to streamline operations and enhance its market positioning.

Swiggy, founded by Sriharsha Majety, Rahul Jaimini, and Nandan Reddy in 2014, has raised over $3.6 billion from investors including SoftBank, DST Global, Alpha Wave Global, Accel, Norwest Venture Partners, Prosus, and Elevation. The company has confidentially filed its prospectus with the Securities and Exchange Board of India (SEBI) for its IPO.

Invesco had increased Swiggy’s valuation to $12.7 billion in January, marking the third consecutive valuation hike for the company. This followed a significant increase to $8.3 billion in October 2023. Baron Capital’s valuation of Swiggy at $12.2 billion as of March 2024 further bolstered the company’s prospects ahead of its IPO, positioning it closer to rival Zomato, which has a market capitalisation exceeding $20 billion, largely driven by its quick-commerce segment.

The valuation adjustments by Invesco reflect the dynamic and competitive nature of the fintech and food delivery markets, as these companies navigate financial assessments and prepare for major market events like IPOs.