Swiggy Sells Rapido Stake for Rs 2,400 Crore Amid Rising Competition

By siliconindia | Wednesday, 24 September 2025, 03:44 Hrs

Swiggy sells entire stake in Rapido for around Rs 2,400 crore.
The move follows Rapido’s entry into food delivery, creating a conflict.
Swiggy to focus on core business and expand Instamart through a new subsidiary.

Swiggy has decided to part ways with Rapido by selling its entire stake in the bike-taxi startup for approximately Rs 2,400 crore. The deal, approved by Swiggy’s board, marks a strategic shift as the food delivery giant focuses on its core business and distances itself from emerging competition.

The stake will be sold in two parts, Rs 1,968 crore worth of shares to Prosus affiliate MIH Investments One, and Rs 431.5 crore worth of preference shares to WestBridge Capital’s Setu AIF Trust. This decision comes after Rapido launched its own food delivery platform, which directly competes with Swiggy’s main line of business.

“When we first invested, Rapido was purely a mobility platform. But once they entered food delivery, it created a conflict of interest. So, we’ve chosen to exit”, Swiggy CEO Harsha Majety told analysts earlier.

Also Read: India's Food Delivery Sector Set to Grow Amid Festive Demand and GST Boost

Swiggy had initially backed Rapido in 2022, leading a $180 million round when the startup was valued at around $800 million. At that time, the goal was to create synergies between Rapido’s bike captains and Swiggy’s delivery fleet. But with Rapido’s pivot into food delivery and rapid expansion into smaller cities, the partnership no longer aligned.

The exit also comes amid mounting financial pressure. Swiggy’s losses jumped to Rs 1,197 crore in the June quarter, up from Rs 611 crore a year earlier, despite a 54 percent increase in revenue to Rs 4,961 crore. Instamart, its quick commerce arm, showed strong performance with gross order value doubling year-on-year to Rs 5,655 crore.

In a related move, Swiggy plans to transfer Instamart to a wholly owned subsidiary via a slump sale. Instamart contributed Rs 2,129.6 crore in revenue in FY25, accounting for nearly a quarter of Swiggy’s total standalone revenue. With a cash reserve of Rs 5,354 crore, Swiggy remains focused on scaling its high growth verticals and expects to break even on quick commerce margins by FY26-FY27.