Swiggy To Sell Rapido Stake To Prosus, Westbridge For INR 2,400 Cr

Foodtech major Swiggy has approved the sale of its stake in bike-taxi startup Rapido to the latter’s existing investors Westbridge and Prosus for about INR 2,400 Cr ($270.4 Mn). 

In its filings with the exchanges today, the company said that it cleared the divestment of 10 equity shares and 1.64 Lakh Series D CCPS it held in Rapido to Prosus entity MIH Investment One B.V. for INR 1,968 Cr. 

Meanwhile, it also cleared the sale of about 36,000 Series D CCPS held in Rapido to Westbridge for INR 431.5 Cr. The stake would be acquired by Setu AIF Trust, a SEBI-registered Category II Alternative Investment Fund managed by Westbridge, along with its affiliates.

The transactions are subject to customary closing conditions and will be executed via a share purchase agreement (SPA).

In its filings today, the foodtech giant said the move was a strategic decision to realise investments for the benefit of its shareholders. Swiggy joined Rapido’s cap table in 2022, leading its $180 Mn Series D round. The company bought about 12% stake in Rapido with the investment. 

While it has signed the agreements to offload its stake in the recently turned unicorn now, Swiggy has been mulling the divestment for months now. In its Q1 shareholders’ letter, Swiggy said that it had to reevaluate the investment due to the entry of the startup in its bread-and-butter food delivery industry. 

“Rapido, one of our investee companies, has announced their intention to enter the food delivery space… As a shareholder, we are extremely happy with their success and value-creation; but do acknowledge a potential conflict of interest that may arise in the future,” the company had said.

Rapido, in partnership with National Restaurant Association of India, began piloting its food delivery platform Ownly in Bengaluru by the end of June 2025. Subsequently, it launched the service in the city two months later. To scale this offering, Rapido had been in discussions with investors like Nexus and Prosus to raise about INR 400 Cr.

Beyond food delivery, Rapido has steadily strengthened its position in India’s ride-hailing market. Originally a bike taxi service, it now also offers autorickshaw and cab services. Recently, Uber CEO Dara Khosrowshahi said Rapido had overtaken Ola to emerge as Uber’s toughest competitor in India. 

On the financial front, Rapido cut its loss by more than 45% to INR 370 Cr in FY24 from INR 675 Cr a year earlier. Its revenue rose 1.5X to INR 648.1 Cr in the fiscal year from INR 443 Cr in FY23.

Meanwhile, Swiggy has been plunging deeper into losses over the past few quarters. In Q1 FY26, the company’s losses grew 96% YoY to INR 1,197 Cr while its operating revenue also registered a 54% YoY jump to INR 4,961 Cr. 

In the quarter, Swiggy’s quick commerce arm Instamart continued to weigh on the company’s bottom line. The segment’s loss stood at a staggering INR 797 Cr in Q1 FY26, almost 3X of INR 280 Cr loss in the year-ago quarter while its revenue grew over 2X to INR 806 Cr from INR 374 Cr in Q1 FY25. 

Besides exiting Rapido, Swiggy also announced its plans to hive off its quick commerce arm Instamart to Swiggy Instamart Private Limited, an indirect step-down wholly-owned subsidiary via a slump sale. The company said that the move will allow it to create a focused corporate structure for Instamart, with enhanced flexibility in resource deployment and long-term strategy. 

Swiggy’s shares ended today’s trading session down 0.04% at INR 449.15  on the BSE.