Food and grocery delivery giant Swiggy has sold its entire 12% stake in bike-taxi startup Rapido for INR 2,399 crore. The sale was approved by Swiggy’s board on September 23, 2025. The move comes after Rapido began venturing into food delivery, creating an overlap with Swiggy’s core business.
The stake sale was completed in two parts. Prosus, an existing investor in both Swiggy and Rapido, bought shares worth INR 1,968 crore ($223 million). WestBridge Capital acquired the remaining stake for INR 431.5 crore ($49 million). Swiggy said the decision was strategic and aimed at benefiting shareholders.
Why Swiggy Sold Its Stake
Swiggy had first invested in Rapido in 2022, leading a $180 million funding round at a valuation of around $800 million. At the time, Swiggy expected synergies between its delivery fleet and Rapido’s captains. Rapido had more than 25 million customers and 1.5 million captains then, with plans to expand in tier-2 and tier-3 cities.
However, by mid-2025, relations changed. Rapido started piloting food deliveries in Bengaluru, operated through its subsidiary Ownly. Swiggy saw this as a conflict with its own food delivery business.
“When we got in two and a half years back, it was a mobility player doing really well. But they decided to get into food delivery themselves. That made us take notice of the conflict, so we’re going separate ways,” said Swiggy CEO Harsha Majety.
The stake sale is fully a secondary transaction, though Rapido will also raise a primary round at a valuation of $2.7–3 billion, up sharply from $1.1 billion in September 2024. Prosus is expected to invest $200 million as part of the new round.
Vidhi Punamiya
Impact on Swiggy and Rapido
The INR 2,399 crore from the stake sale will strengthen Swiggy’s cash reserves. As of Q1 FY26, Swiggy held INR 5,354 crore in cash and equivalents. With the Rapido sale, this will increase further, giving the company room to invest in its quick commerce and food delivery operations.
Swiggy’s June-quarter results showed a widening loss of INR 1,197 crore, even as revenue grew 54% to INR 4,961 crore. Quick commerce remained the biggest growth driver, with Instamart’s gross order value doubling year-on-year. The company also plans to transfer its Instamart unit to a wholly owned subsidiary through a slump sale, which generated INR 2,129.6 crore in revenue in FY25.
Rapido’s valuation has more than doubled to $2.3 billion following the secondary share sale. Its entry into food delivery comes amid competition with Swiggy and Zomato. The startup initially piloted services in three neighborhoods in Bengaluru, signaling a cautious but strategic expansion.
The sale marks a clear separation between Swiggy and Rapido as both focus on their respective core businesses.
Purbalee Dutta
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