Swiggy Exits Rapido Investment; Prosus and WestBridge Take Over Stake Deal valued at INR 2,399.5 crore delivers over 2.3 times return on Swiggy's original investment.
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Swiggy has sold its stake in bike taxi platform Rapido for a total of INR 2,399.5 crore, securing significant returns on an investment made less than four years ago. The food delivery company transferred holdings to two buyers, with MIH Investments One B.V., part of the Prosus group based in the Netherlands, acquiring shares worth INR 1,968 crore, and Setu AIF Trust along with affiliate WestBridge investing INR 431.5 crore.
The deal includes the sale of 10 equity shares and nearly 2 lakh Series D Compulsorily Convertible Preference Shares of Roppen Transportation Services Private Limited, the parent entity of Rapido.
Swiggy had invested about USD 120 million (INR 1,020 crore) in Rapido in 2022, giving it a 12 percent stake. The transaction delivers the company more than 2.3 times its investment value. WestBridge, one of the acquirers, is already the largest shareholder in Rapido.
The company described the sale as a strategic step to unlock investment value for its shareholders. Completion of the deal will depend on regulatory and shareholder approvals, including clearance from the Competition Commission of India. The decision also reflects Swiggy's effort to avoid potential conflicts of interest, as Rapido has recently entered the food delivery segment, intensifying overlaps in operations.
Alongside this divestment, Swiggy's board has approved the transfer of its quick commerce arm Instamart into a separate entity, Swiggy Instamart Private Limited. The move, structured as a slump sale, will see assets and liabilities transferred at book value in exchange for a lump sum cash consideration. Swiggy stated that the reorganization would help create a focused unit dedicated to long-term growth in the capital-intensive quick commerce sector.
The development mirrors rival Zomato, which operates Blinkit as a standalone subsidiary. Establishing Instamart as an independent unit is expected to provide Swiggy with greater flexibility, sharper operational focus and scope for raising external funds.
Financial advisory firm JM Financial recently suggested that Swiggy should raise at least USD 500 million (around INR 4,400 crore) to support growth and improve liquidity. The firm also cautioned that delaying such a fundraise could pose risks if competition or operational hurdles weaken the company's financial position.
