NEW YORK (Diya TV) — US-based investment firm Baron Capital Group has hiked the valuation of Indian online food delivery giant Swiggy to $12.16 billion, marking a significant increase from its previous post-money valuation of $10.7 billion secured during its early 2022 funding round.

According to recent filings reported by TechCrunch on March 1, Baron Capital raised the value of its stake in Swiggy to $87.2 million from its initial investment of $76.7 million. The investment firm cited Swiggy’s commanding 45% market share in the Indian food delivery sector and its promising position to capitalize on the growth trajectory of online food delivery in the country.

Baron Capital expressed confidence in India’s burgeoning food delivery industry, highlighting factors such as a growing middle class, rising disposable income, and increasing smartphone penetration as drivers for continued expansion.

Swiggy, which is gearing up for a major IPO expected in 2024 with a projected issue size of $1 billion, has been the subject of valuation adjustments in recent times. Last year, Baron Capital had marked down Swiggy’s fair value by 10%, resulting in a valuation of $6.5 billion as of March 31, 2023. However, US-based investment company Invesco had earlier raised Swiggy’s valuation to about $8.3 billion in 2023.

Founded in 2014, Swiggy competes with Zomato in India’s food delivery market and has raised approximately $3.6 billion in funding to date. The company experienced a significant boost in valuation following a $700 million Series K funding round led by Invesco in 2022, doubling its valuation to $10.7 billion.

Despite facing challenges, Swiggy reported a 40% increase in operating revenue to INR 8,264.4 crore in the fiscal year 2023, with a net loss of INR 4,179.3 crore, a 15% increase year-on-year. The company claimed to have achieved profitability in its food delivery business as of March 2023.