Invesco Marks Down Valuations Of IPO-Bound Swiggy, Pine Labs

Swiggy was valued at $10B a couple of months back. Good luck employees waiting for ESOP buy-back in July 2023. Your shares are now worth half of what it used to be! https://www.moneycontrol.com/news/business/invesco-cuts-swiggys-valuation-to-5-5-bn-2nd-markdown-in-4-months-10549051.html

- Early investors in Swiggy, including Prosus, Accel, and Elevation Capital, are selling shares ahead of the company's IPO later this year. - New investors, such as 360 One and high net-worth individuals, are buying these shares, showing confidence in Swiggy's growth potential. - The company is signaling a potential IPO valuation of $10-13 billion, with current secondary transactions valuing it at $9.3 billion. - Accel and Elevation Capital, early investors since 2015, are selling shares to realize gains accumulated over the years. - Prosus, holding around 33% of Swiggy, needs to reduce its stake to 25% or below to avoid being tagged as a promoter during the IPO. Source: Moneycontrol

Food tech market is 50B+ ( duopoly) Most of my friends use swiggy for everything like food, groceries and dine out. They say Zomato sucks in ui ux and 3rd grade restaurants are there at Zomato, swiggy is better at offers and quality restaurants. Zomato peak stock value was 180inr, which makes it a 15B firm, by that logic swiggy can get even 20B ipo. PS - Baron capital already raised swiggy valuation to 13.9B usd What do u think guys?

- Swiggy has launched a $65 million ESOPs liquidity programme, marking its fifth such event since 2018. - Employees across various levels can now receive liquidity for their ESOPs in the secondary market. - This is the third consecutive ESOP liquidity event following those in July 2022 and 2023. - Swiggy has enabled over Rs 1,000 Cr of ESOPs liquidity, benefiting 3200 employees over five events. - The announcement comes as Swiggy prepares for its IPO, with plans to raise approximately $1.25 billion. Source: Entrackr

Personally very excited for this one, after the gains I made on Zomato.

"Only when the tide goes out do you discover who's been swimming naked." - Warren Buffet I want to appreciate Swiggy for whatever they've done in the last year. Everyone's had a tough time, and through the bear market (which we are still in), everyone lost valuation majorly. You need to have a super strong business to be able to maintain strength (given we're still not in a bull). When in this market, somebody almost doubles their valuation, it's a feat. I know there's layoffs and everything that happened there too, but just happy to see all of this happen as an avid user and a small founder who's realized how tough it's been these last 1-2 years.

https://www.business-standard.com/amp/markets/news/swiggy-may-file-papers-with-sebi-for-ipo-in-2-weeks-to-raise-rs-8-000-cr-124021401787_1.html

Most of us are curious of how decisions are made in major VC funds, as these funds are private and only share this information with their Limited Partners (LPs). For the unknown, there are VC funds known as Corporate Venture Capital funds, which are the venture arms of corporate firms; they are required to disclose the performance of their CVC funds to the general public. Prosus, one of the largest funds in this category, has just released its 2024 Annual Report, so thought it would be helpful to share the key takeaways with you all. So, here we go: 1/ Swiggy: On the Launchpad Swiggy continues to impress with a 26% surge in its gross order value and a robust user base that's grown to 104 million. The food delivery giant isn't just expanding—it's preparing to soar with a confidential IPO filing. Swiggy's blend of core deliveries and quick-commerce ventures positions it as a frontrunner in the food-tech race. 2/ Byju's: A Reality Check The tides have turned for Byju’s, once a darling of the edtech world, now facing a stark reality with a $493 million valuation write-down by Prosus. This significant markdown is a wake-up call to the high-flying valuations in the edtech sector, spotlighting the need for sustainable financial health over speculative growth. 3/ PayU: Quietly Confident While specific updates on PayU were sparse, its role in Prosus’s fintech ambitions remains pivotal. PayU continues to weave through Prosus's strategy, likely focusing on enlarging its digital payment solutions and tapping into burgeoning financial service opportunities in emerging markets. 4/ PharmEasy: Unsung Potential PharmEasy's story remains under the radar in this year’s dispatch. However, as a component of Prosus's health tech ventures, it’s poised to play a crucial role in expanding accessible digital healthcare solutions, streamlining services from prescriptions to doorstep delivery. The Bigger Picture? Prosus's strategy paints a vivid portrait of India's evolving startup ecosystem. It's no longer just about rapid growth and sky-high valuations. The game has changed: 1/ Sustainability is king: Byju's fall from grace is a stark reminder that financial health trumps speculative growth. 2/ IPO readiness matters: Swiggy's preparations show the market's appetite for well-prepared tech giants. 3/ Quiet expansion: PayU and PharmEasy's low-key presence suggests strategic focus on steady growth over flashy headlines. 4/ Diversification is key: Prosus's varied portfolio highlights the importance of spreading bets across sectors. Checkout their annual report at https://www.prosus.com/~/media/Files/P/Prosus-CORP/AR2024/1latestfinancialresults/04annualreport/fy2024annualreport.pdf - happy reading! Would you like more breakdowns of such reports and documents? Let us know in comments below 👇🏽