Food and grocery delivery platform Swiggy is allegedly planned to sell its entire 12% stake in ride–hailing startup Rapido, which can carry the company According to a report by Moneycontrol, 2,500 crores (about $ 300 million).
Swiggi invested all around In 2022, Rapido led 950 crores ($ 120 million), led a funding round, which gave the startup a price of about $ 827 million. Since then, the evaluation of Rapido has almost increased almost three times, now the ride-hinge sector is estimated between $ 2.7 billion and $ 3 billion. If the sales undergoes this evaluation, Swiggy stands to create 2.5X returns on its investment.
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The deal comes when Swiggy appears to strengthen its financial position. Bangalore -based company has reported net losses 2,278 crore in previous two quarters, with cumulative loss of over 6,600 crores in nine quarters. Q1 as FY26, stood in Swigy’s cash reserves 5,354 crores. Proceeding from sales this stake can give it a very essential financial boost as it fights strong competition in India’s quick commercial market with Zomato, Blinking, Zepto, Big Business and Flipkart.
Swiggi’s original investment in Rapido was a strategic move, as Rapido offered two-wheelers and three-wheels rides, complementing Swigi’s logistics. However, Rapido’s plan to enter the food delivery segment now now causes a possible conflict of interest, making Swiggy reconsider its stake.
In a letter to the shareholders, Swiggi said: “As a shareholder, we are very happy with their success and value-making; but accept the possible struggle of the interests that arise in the future.”
According to Moneycontrol, the transaction will be a secondary stock sales, which means that income will go into swigy, not rapido. Meanwhile, Rapido is reportedly capitalized well, the bank burns $ 150–160 million in the bank and a minor cash of $ 3 million a month.
Based on interest from institutional buyers, Swiggi is expected to complete the stake sales in the next three months.
