Baron Capital, an investor in Indian meals supply startup Swiggy, has elevated the worth of its stake within the Indian agency, implying a valuation of $12.16 billion, surpassing the $10.7 billion post-money valuation at which Swiggy secured funding in early 2022.

New York-based Baron Capital disclosed in new fillings (PDF) that it has marked up the worth of its stake in Bengaluru-based Swiggy to $87.2 million, a rise from its unique funding of $76.7 million within the meals supply platform.

The valuation uptick on the finish of December is a noteworthy growth for Swiggy and, extra broadly, the Indian startup ecosystem. That is significantly vital provided that Swiggy’s valuation had beforehand been marked right down to a low of $5.5 billion.

Swiggy instructions roughly 45% market share within the Indian meals supply sector and is “properly positioned to learn from structural development in on-line meals supply in India,” Baron Capital wrote (PDF) in a separate submitting.

It added: “We consider India’s meals supply business continues to be in its infancy and can proceed to scale over the subsequent a number of years because of a rising center class, rising disposable earnings, increased smartphone penetration and structural shifts in shopper preferences pushed by a tech-savvy, youthful inhabitants. The business has additionally turn out to be a duopoly between Swiggy and Zomato, which bodes properly for the long run profitability and scale of the corporate.”

Swiggy reported final 12 months that it had pared its bills and its meals supply enterprise had turned worthwhile, a feat it has maintained since. The startup plans to file for an IPO later this 12 months.

Shares of Zomato, Swiggy’s chief rival, have surged prior to now six months because the Gurgaon-headquartered agency improves its funds. Zomato had a market cap of about $17 billion.

Swiggy, which can also be a key participant within the instant-grocery supply house in India, is more and more broadening its choices. Swiggy — which counts Prosus Ventures, Accel and SoftBank amongst its backers — is increasing into shopper electronics and different classes, focusing on a bigger share of the e-commerce market by providing 20-minute supply for all purchases.

Walmart-backed Flipkart, which leads e-commerce in India, within the meantime, is planning to enter the instant-delivery house, For Millionaires reported Thursday.