US Based Investor Invesco Devalues IPO-Bound Swiggy, Pine Labs, Causes Shockwaves

The US-based investor Invesco has reported in its half-yearly shareholder report filed with the US Securities and Exchange Commission (SEC) that it has decreased the fair value in its books of the food delivery company Swiggy and the fintech startup Pine Labs.

As of April 30, Pine Labs was valued by Invesco at $3.5 billion, up from $3.8 billion on January 31 and $4.8 billion on December 31, 2023.

Around 2.8% of Pine Labs is owned by Invesco, and roughly 1.3% is owned by Baron Funds. Peak XV Partners holds around 20.6% of the shares, based on Tracxn statistics.

The fintech major is currently in the process of reverse flipping and gained court approval in May to combine its domestic and city-state entities. This is the same time as the valuation.

As of April 30, compared to a quarter earlier, the US-based investor has somewhat reduced the fair value of the groceries and meal delivery business Swiggy, which is headed for an initial public offering.

Swiggy was valued at $12.7 billion by Invesco as of January 31. As of March 31, Swiggy’s valuation has increased to $15.1 billion by US-based asset manager Baron Capital, representing a 25% increase over the investor’s previous fair value.

In preparation for a $1.25 billion initial public offering (IPO), Swiggy has filed a secret version of its prospectus with the Securities and Exchange Board of India (SEBI). Since its founding in 2014, Swiggy—which was founded by Sriharsha Majety, Rahul Jaimini, and Nandan Reddy—has raised approximately $3.6 billion from investors such as SoftBank, DST Global, Alpha Wave Global, Accel, Norwest Venture Partners, Prosus, Elevation, and others.

Related: Swiggy Receives Another Valuation Boost from Invesco Before Going Public

A couple of big names in the Indian startup scene, Swiggy and Pine Labs, are in the news right now as they get ready for their IPOs. After becoming industry leaders, both businesses are now preparing to go public in order to take advantage of their dominant market positions.

Since its launch, Swiggy, one of the biggest food delivery services in India, has experienced exponential development. Millions of users have responded favorably to the company’s customer-centric approach, broad restaurant alliances, and strong logistical network.

Swiggy hopes to collect a sizable amount of money through the IPO in order to improve its technological infrastructure, develop new verticals like grocery delivery and cloud kitchens, and broaden its product offerings. Swiggy’s decision to go public is evidence of its belief in its growth trajectory and its goal of controlling the hyperlocal and food delivery markets.

Leading merchant commerce platform Pine Labs is also getting ready for its initial public offering (IPO), which is one of the financial industry’s most anticipated public listings. Pine Labs offers a range of financial and payment services to retailers, such as working capital loans, loyalty programs, and point-of-sale (POS) systems.

The business has increased its presence throughout Asia and has been at the forefront of encouraging the use of digital payments in India. Pine Labs wants to use the money it receives from going public to expand its operations, innovate more, and break into new markets abroad. Pine Labs’ IPO will be a major turning point in the company’s history, demonstrating both the strength of its business plan and the growing market for fintech products.

Though Invesco has reduced its value of Swiggy and Pine Labs, the future seems bright for the soon-to-be IPO companies. Both businesses have proven to be resilient and flexible in the face of market swings, and their operations are supported by solid foundations and expansion plans.

Rather than being a setback, the valuation revisions are a recalibration that gives Pine Labs and Swiggy a chance to improve investor trust and their value propositions. Their planned initial public offerings (IPOs) are anticipated to garner significant interest as they proceed with their expansion and innovation, thereby reinforcing their leadership positions in their respective industries and laying the groundwork for long-term growth and market supremacy.

Majority of the investors are positive that the valuation revision is just an extension of a bad economic situation of the economies overall and has less to do with the fundamentals of the startups. Investors are extremely bullish on Swiggy & Pine Labs IPOs.