Swiggy exits Rapido, promoting its 12% stake for INR 2,399 crore because the bike-taxi startup enters meals supply. What led to this main transfer, and the way will it reshape India’s meals and mobility market?
Meals and grocery supply big Swiggy has offered its total 12% stake in bike-taxi startup Rapido for INR 2,399 crore. The sale was accepted by Swiggy’s board on September 23, 2025. The transfer comes after Rapido started venturing into meals supply, creating an overlap with Swiggy’s core enterprise.
The stake sale was accomplished in two components. Prosus, an current investor in each Swiggy and Rapido, purchased shares price INR 1,968 crore ($223 million). WestBridge Capital acquired the remaining stake for INR 431.5 crore ($49 million). Swiggy mentioned the choice was strategic and geared toward benefiting shareholders.
Why Swiggy Offered Its Stake
Swiggy had first invested in Rapido in 2022, main a $180 million funding spherical at a valuation of round $800 million. On the time, Swiggy anticipated synergies between its supply fleet and Rapido’s captains. Rapido had greater than 25 million prospects and 1.5 million captains then, with plans to develop in tier-2 and tier-3 cities.
Nevertheless, by mid-2025, relations modified. Rapido began piloting meals deliveries in Bengaluru, operated by way of its subsidiary Ownly. Swiggy noticed this as a battle with its personal meals supply enterprise.
“After we obtained in two and a half years again, it was a mobility participant doing very well. However they determined to get into meals supply themselves. That made us take discover of the battle, so we’re going separate methods,” mentioned Swiggy CEO Harsha Majety.
The stake sale is totally a secondary transaction, although Rapido can even elevate a major spherical at a valuation of $2.7–3 billion, up sharply from $1.1 billion in September 2024. Prosus is predicted to speculate $200 million as a part of the brand new spherical.
Swiggy: Delivering Happiness at Your Doorstep | Founders | Success Story | Imaginative and prescient | Mission
Swiggy is a meals supply utility. It permits the customers to entry their utility from Android, IOS, and web site, to order meals from close by eating places. Examine Swiggy success story, founders, funding, imaginative and prescient, mission, tagline, enterprise mannequin, and extra.
Impression on Swiggy and Rapido
The INR 2,399 crore from the stake sale will strengthen Swiggy’s money reserves. As of Q1 FY26, Swiggy held INR 5,354 crore in money and equivalents. With the Rapido sale, this may improve additional, giving the corporate room to spend money on its fast commerce and meals supply operations.
Swiggy’s June-quarter outcomes confirmed a widening lack of INR 1,197 crore, at the same time as income grew 54% to INR 4,961 crore. Fast commerce remained the largest development driver, with Instamart’s gross order worth doubling year-on-year. The corporate additionally plans to switch its Instamart unit to a completely owned subsidiary by way of a hunch sale, which generated INR 2,129.6 crore in income in FY25.
Rapido’s valuation has greater than doubled to $2.3 billion following the secondary share sale. Its entry into meals supply comes amid competitors with Swiggy and Zomato. The startup initially piloted providers in three neighborhoods in Bengaluru, signaling a cautious however strategic growth.
The sale marks a transparent separation between Swiggy and Rapido as each give attention to their respective core companies.
Rapido Success Story | Valuation | Funding | Unicorn | Enterprise Mannequin | Founders
Rapido has entered the unicorn membership by receiving $120 million in funding from Westbridge Capital in July 2024. Take a look at the total story right here! Know extra about it on Rapido Wiki.
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