How Swiggy may get ₹2,500 crore ‘delivery’ from Rapido
Proceeds from this sale could give Swiggy a much-needed financial boost.
Food and grocery delivery platform Swiggy is reportedly planning to sell its entire 12% stake in ride-hailing startup Rapido, in a move that could fetch the company up to ₹2,500 crore (approximately $300 million), according to a report by Moneycontrol.
Swiggy had invested around ₹950 crore ($120 million) in Rapido in 2022, leading a funding round that valued the startup at about $827 million. Since then, Rapido’s valuation has grown nearly threefold, now pegged between $2.7 billion and $3 billion, driven by rapid expansion in the ride-hailing sector. If the sale goes through at this valuation, Swiggy stands to make a 2.5x return on its investment.Mobile finder: iPhone 17 Air expected to launch in the coming months
The deal comes as Swiggy looks to strengthen its financial position. The Bengaluru-based company has reported net losses of ₹2,278 crore over the last two quarters, with cumulative losses of over ₹6,600 crore across nine quarters. As of Q1 FY26, Swiggy’s cash reserves stood at ₹5,354 crore. Proceeds from this stake sale could give it a much-needed financial boost as it battles strong competition in India’s quick commerce market from Zomato, Blinkit, Zepto, Big Basket, and Flipkart.
Swiggy’s original investment in Rapido was a strategic move, as Rapido offered two-wheeler and three-wheeler rides, complementing Swiggy’s logistics. However, Rapido’s plans to enter the food delivery segment now pose a potential conflict of interest, leading Swiggy to reconsider its stake.
{{/usCountry}}Swiggy’s original investment in Rapido was a strategic move, as Rapido offered two-wheeler and three-wheeler rides, complementing Swiggy’s logistics. However, Rapido’s plans to enter the food delivery segment now pose a potential conflict of interest, leading Swiggy to reconsider its stake.
{{/usCountry}}In a letter to shareholders, Swiggy stated: “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.”
{{/usCountry}}In a letter to shareholders, Swiggy stated: “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.”
{{/usCountry}}According to Moneycontrol, the transaction will be a secondary share sale, meaning the proceeds will go to Swiggy, not Rapido. Meanwhile, Rapido is reportedly well-capitalised, with $150–160 million in the bank and a modest cash burn of around $3 million a month.
{{/usCountry}}According to Moneycontrol, the transaction will be a secondary share sale, meaning the proceeds will go to Swiggy, not Rapido. Meanwhile, Rapido is reportedly well-capitalised, with $150–160 million in the bank and a modest cash burn of around $3 million a month.
{{/usCountry}}Swiggy is expected to complete the stake sale over the next three months, depending on interest from institutional buyers.
{{/usCountry}}Swiggy is expected to complete the stake sale over the next three months, depending on interest from institutional buyers.
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