Swiggy sells entire Rapido stake for ₹2,400cr, bags 2.5x profit
What's the story
Swiggy has announced the complete divestment of its 11.8% stake in ride-hailing start-up Rapido for ₹2,400 crore. The company has sold its shares to existing investors Prosus and WestBridge Capital. The deal will see Prosus acquiring shares worth ₹1,968 crore ($223 million) and WestBridge Capital buying the remaining shares worth ₹432 crore ($49 million).
Strategic divestment
Swiggy's cash balance increases to ₹7,753 crore
Swiggy's decision to exit its stake in Rapido comes as the latter expands into food delivery. The company had previously invested ₹1,350 crore in Rapido in 2022. The latest deal brings Swiggy's total cash balance to ₹7,753 crore, up from ₹5,354 crore at the end of June quarter (Q1 FY26). This will give Swiggy a much-needed cash boost amid stiff competition in the food-tech market.
Expansion strategy
Rapido's expansion into food delivery and primary round raise
Rapido has grown rapidly from a two-wheeler ride-hailing service to offering autos, cars, and food delivery under its "Ownly" brand. The company is looking to raise a primary round at a valuation of $2.7-3 billion, up from $1.1 billion earlier. This move comes as part of its strategy to take on incumbents like Swiggy and Zomato in India's tightly controlled food-tech market.