United States-based investor Investor announced a cut to the valuations of Pine Labs and Swiggy in its half-yearly shareholder report on Thursday, as per media reports.
The firm reduced the fair value of Pine Labs, a fintech firm founded by Amrish Rau, from $3.8 billion on January 31 to $3.5 billion on April 30, the reports said. The Noida-based firm had last raised funds at a valuation of $5 billion.
Similarly, the fair value of Swiggy was reduced from $12.7 billion to $12.3 billion in the same period mentioned above.
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Notably, Invesco led Swiggy's fundraiser in January 2022 when the startup raised $700 million at a valuation of $10.7 billion. While the firm has cut the fair value of the Bengaluru-based startup, it is still higher than the valuation it attracted two years ago.
Reports indicated that the markdown is typically related to the macro and micro economic conditions, and it would not reflect permanently on the status of the companies in question.
The development comes at a time when the fintech firm is in the process of shifting its domicile from Singapore to India. Recently, a Singapore court approved the merger of its Singapore-based entity, Pine Labs Limited, with India-based Pine Labs Private Limited.
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Meanwhile, Prosus and Softbank-backed Swiggy had reportedly received approval from shareholders for a $1.2 billion Initial Public Offering. As per Mint, it filed the papers for the IPO in April 2024. The fintech firm also wanted to go for a public listing last year at a valuation of $6 billion but reportedly backed down due to volatile market conditions".
Moneycontrol reported that bankers expect Swiggy to list at a market cap in the range of $10 to $13 billion. Accel, Elevation and Prosus, among others, have been diluting their stakes in the secondary market, the report added.
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