Swiggy to Exit Rapido with ₹2,400 Cr Stake Sale to Prosus, Westbridge

Swiggy has approved the sale of its stake in bike-taxi startup Rapido to existing investors Prosus and Westbridge in a transaction valued at around ₹2,400 crore. Exchange filings on September 23 confirm the decision, marking Swiggy’s formal exit from the ride-hailing platform it first backed in 2022.

As part of the deal, Prosus entity MIH Investment One B.V. will acquire 10 equity shares and 1,63,990 Series D CCPS for ₹1,968 crore, while Westbridge’s Setu AIF Trust will purchase 35,958 Series D CCPS for ₹431.5 crore. Both deals will be executed via a share purchase agreement and remain subject to closing conditions.

Why Swiggy is divesting Rapido stake

Swiggy’s move comes after months of internal review. In its shareholder communication earlier this year, the company acknowledged the risk of overlap after Rapido expanded into food delivery with its Ownly pilot in Bengaluru. creating a conflict of interest with Swiggy's core food delivery business. Swiggy acknowledged this potential overlap in its shareholder communication, expressing both happiness for Rapido's success and concern about future competition. The company is now exploring options to exit its significant stake in Rapido to remove potential strategic tensions.

By exiting, Swiggy aims to realign focus on its own core businesses and unlock value for shareholders.

Rapido’s evolving strategy and growth

Since its inception as a bike taxi operator, Rapido has diversified into auto-rickshaw and cab services. In 2025, it tested its food delivery venture Ownly with the National Restaurant Association of India before launching it in Bengaluru. To scale the new service, Rapido has been in talks with investors including Nexus and Prosus to raise fresh capital of about ₹400 crore.

Financially, Rapido reduced its FY24 losses to ₹370 crore from ₹675 crore the previous year, while revenues climbed 1.5x to ₹648 crore. Its growing presence has also been acknowledged by competitors — Uber’s CEO recently called Rapido its toughest rival in India, surpassing Ola.

Swiggy, meanwhile, has been battling widening losses despite revenue growth. In Q1 FY26, losses nearly doubled year-on-year to ₹1,197 crore, even as revenue rose 54% to ₹4,961 crore. Much of the drag has come from Instamart, its quick commerce arm, which reported a ₹797 crore loss in the quarter.

To address structural challenges, Swiggy has announced plans to hive off Instamart into a wholly owned subsidiary. The company believes the move will enable sharper business focus and resource allocation.

Market impact

The divestment of Rapido shares to Prosus and Westbridge not only reduces Swiggy’s exposure to a potential competitor but also brings liquidity to its balance sheet. While both Prosus and Westbridge already hold stakes in Rapido, the deal strengthens their positions in the company. Swiggy’s shares ended marginally lower at ₹449.15 on the BSE following the announcement.