Swiggy, the Bengaluru-based food delivery giant, has completed the sale of its entire 12% stake in ride-hailing startup Rapido for Rs 2,399 crore to existing investors Prosus and WestBridge Capital. Announced via regulatory filings on September 23, 2025, the secondary transaction marks a full exit for Swiggy from its three-year-old investment, delivering nearly 2.5x returns on the initial Rs 950 crore outlay made in 2022. For investors, startup watchers, and mobility sector analysts searching Swiggy Rapido stake sale, Prosus WestBridge Rapido deal 2025, or Swiggy cash infusion, this move provides much-needed liquidity to Swiggy amid widening losses (Rs 1,197 crore in Q1 FY26) and intensifying competition from Zomato’s Blinkit and Zepto. The proceeds, boosting Swiggy’s cash pile to over Rs 7,750 crore, could fund expansions or debt reduction as the company eyes profitability.
The deal, structured as two separate transactions, values Rapido at around Rs 20,000 crore ($2.3 billion), a sharp jump from its $1.1 billion valuation in 2022.
Deal Structure: Secondary Sale to Existing Backers
Swiggy’s board approved the divestment on September 23, categorizing the Prosus portion as a related-party transaction due to the investor’s 23.31% stake in Swiggy. The sale involves Series D Compulsorily Convertible Preference Shares (CCPS) and equity shares in Rapido’s parent, Roppen Transportation Services Pvt Ltd.
Breakdown:
- To Prosus (MIH Investments One BV): 10 equity shares and 163,990 Series D CCPS for Rs 1,968 crore.
- To WestBridge (Setu AIF Trust): 35,958 Series D CCPS for Rs 431.49 crore.
Prosus and WestBridge, Rapido’s largest stakeholders (23% and 19% respectively), are absorbing the shares, avoiding new entrants. This follows Rapido’s planned $200 million primary round at a $2.7-3 billion valuation, blending fresh capital with secondaries.
| Buyer | Stake Acquired | Consideration (Rs Cr) | Notes |
|---|---|---|---|
| Prosus (MIH Investments) | 10 Equity + 163,990 CCPS | 1,968 | Related-Party Transaction |
| WestBridge (Setu AIF) | 35,958 CCPS | 431.49 | Arm’s Length Deal |
| Total | Full 12% Stake | 2,399 | 2.5x Return on Rs 950 Cr Investment |
Strategic Rationale: Cash Infusion Amid Competitive Squeeze
Swiggy’s exit resolves potential conflicts, as Rapido eyes food delivery expansion—overlapping with Swiggy’s core business. The Rs 2,399 crore windfall arrives at a critical juncture: Q1 FY26 losses doubled to Rs 1,197 crore year-on-year, driven by 132% surge in ad spends to Rs 1,036 crore.
- Cash Boost: Adds to Rs 5,354 crore Q1FY26 reserves, providing runway for Instamart quick commerce (Rs 2,129 crore FY25 revenue).
- Return on Investment: 2.5x in three years, validating Swiggy’s 2022 bet during Rapido’s $1.1 billion valuation.
- Market Context: Rapido’s 120% GMV growth to $2.2 billion annualized justifies the Rs 20,000 crore valuation.
MD & Group CEO Sriharsha Majety noted during Q1 earnings: “We’ll modulate investments for scale-led profitability.” Shares closed flat at Rs 449.95 on NSE post-announcement.
Broader Implications: Mobility and Delivery Convergence
The sale highlights ecosystem overlaps: Rapido’s food ambitions clash with Swiggy’s delivery dominance, while quick commerce wars (Zomato Blinkit vs. Swiggy Instamart) intensify. Proceeds could fund platform fee hikes (to Rs 15/order) or acquisitions.
For Rapido: Consolidates ownership with Prosus/WestBridge, aiding its $200 million round.
Conclusion: Swiggy’s Strategic Stake-Off
Swiggy’s Rs 2,399 crore Rapido exit is a savvy cash grab, yielding 2.5x returns while dodging conflicts in a consolidating market. As losses mount and competition bites, this liquidity lifeline could tip the scales toward profitability. For those tracking Swiggy financials 2025, it’s a positive pivot—will it fuel Instamart’s surge, or buffer festive spends? Q2 results will reveal. Moneycontrol
