Swiggy has decided to completely exit its investment in bike taxi and logistics platform Rapido, finalizing a deal worth about US$270Mn (~₹2,400 crore). The food delivery platform (which owned around 12% of Rapido) is transferring its shares to two of Rapido’s existing backers, Prosus Ventures and WestBridge Capital. The deal is still subject to customary approvals, including clearance from shareholders and regulators under the Companies Act and SEBI rules.
Once completed, it will be one of Swiggy’s most successful exits in terms of returns. Also with this transaction, the food delivery giant moves away from a potential business conflict, since Rapido has recently entered the food delivery space.
The deal structure involves two separate transactions. Swiggy will sell 10 equity shares along with nearly 1.64 lakh Series D compulsorily convertible preference shares (CCPS) to MIH Investments One B.V. (a Prosus unit) for about ₹1,968 crore. Also, another 35,958 Series D CCPS will be transferred to Setu AIF Trust (managed by WestBridge Capital) for around ₹432 crore. Together, the transactions bring the total consideration to about ₹2,400 crore, making it one of the more significant secondary share sales in India’s startup sector in recent years.
Notably, Swiggy had invested around $180 million (~ ₹950 crore at the time) in Rapido in April 2022. And in just over two years, that investment has substantially increased in value, with the exit giving Swiggy more than double its initial expenditure. Importantly, based on the share sale, Rapido is being valued in the range of $2.5 to $2.7 billion.
Swiggy’s decision to sell its stake is also a strategic one. Actually, Rapido has recently launched a food delivery service called ‘Ownly,’ which directly competes with Swiggy’s main business. Therefore, by exiting now, Swiggy avoids this clash and, at the same time, gains access to a large amount of capital. The proceeds from the sale will help strengthen Swiggy’s balance sheet at a time when it has been facing significant losses in other verticals, particularly its quick-commerce arm Instamart. In the first quarter (Q1) of FY26, Swiggy’s revenue increased 54% to about ₹4,961 crore, but its net loss also grew to ₹1,197 crore. The company had around ₹5,354 crore in cash.
On the other hand, for Rapido, the share sale represents a change in its ownership structure rather than new funding. Since the deal is a secondary transaction, no fresh capital will flow into the company. Instead, it only strengthens the holdings of Prosus and WestBridge.
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