Swiggy to offload Rapido stake for nearly ₹2,400 crore in twin deals

Swiggy Ltd has approved the divestment of its holding in bike-taxi operator Rapido through two separate transactions worth a combined ₹2,399 crore.

The company will sell shares valued at ₹1,968 crore to

Dutch-based MIH Investments (Prosus entity), while a second deal will transfer Rapido shares worth ₹431 crore to Westbridge Capital LLC's Setu AIF Trust, a SEBI-registered alternative investment fund, according to its exchange filing.

The transaction is a related-party deal, as Prosus Group and its associates are Swiggy’s largest shareholders, holding a 23.31% stake.

Swiggy said the move forms part of a strategic decision to realise investments and generate value for shareholders, even as it continues to focus on its core food delivery and grocery businesses.

Rapido, in which Swiggy was an early backer, has been expanding rapidly across Indian cities in the bike-taxi and shared mobility space. The divestment marks one of Swiggy’s most significant portfolio exits in recent years.

Overall, Swiggy is selling its entire 12% stake in Rapido for ₹2,400 crore, implying a valuation of ₹20,330 crore (around $2.3 billion) for Rapido—up from $1.1 billion in its last funding round in 2024, according to ETtech.

Separately, the Board also approved the transfer of quick-commerce operations under the Instamart brand to Swiggy Instamart Pvt Ltd, a wholly owned subsidiary.

Ahead of the announcement, shares of Swiggy closed flat at ₹449.95 on the NSE.

On Monday,shares of Swiggy Ltd slipped as much as 3% after brokerage firm JM Financial downgraded the stock. The firm cut its rating to “reduce” from “hold” and lowered its price target to ₹420 from ₹460.

JM Financial highlighted the company’s weak balance sheet as an ongoing concern, calling for remedial measures. The downgrade came amid early media reports suggesting that Swiggy is considering the sale of its stake in Rapido to strengthen its finances.