The Exit Deal
Food and grocery delivery giant Swiggy has officially sold its entire 12 percent stake in Rapido for Rs 2,399 crore. The buyers are Prosus and Westbridge Capital, both existing investors in the fast-growing ride-hailing startup. According to filings, Prosus acquired shares worth Rs 1,968 crore while Westbridge picked up shares worth Rs 431 crore.
Swiggy had earlier indicated that it would exit Rapido due to potential conflicts of interest after the bike taxi company entered the food delivery space. This sale now marks a complete exit from the investment, which had been closely watched by the startup ecosystem.
Rapido’s Rising Valuation
Sources revealed that this was a purely secondary transaction. At the same time, Rapido is preparing to raise a fresh primary round at a valuation of $2.7 to 3 billion, more than double its earlier $1.1 billion valuation. The jump highlights investor confidence in Rapido’s growth trajectory as it continues to expand aggressively across bike taxis, autos, and food delivery.
With Prosus expected to infuse over $200 million into Rapido in the upcoming funding round, the company is set to strengthen its market position further and diversify its offerings.
Boost for Swiggy’s Balance Sheet
For Swiggy, the Rs 2,399 crore inflow will add significant strength to its cash reserves at a time when competition in the food and grocery delivery market remains intense. As of June 2025, Swiggy reported cash and equivalents of Rs 5,354 crore. With the fresh proceeds from the Rapido sale, its war chest will now exceed Rs 7,700 crore, giving it more flexibility to invest in expansion and customer acquisition.
This liquidity will be crucial as Swiggy continues to battle Zomato in food delivery and scale its Instamart quick commerce vertical.
Industry Implications
The deal underscores two major shifts in India’s startup landscape. First, large strategic investors like Prosus are doubling down on mobility and hyperlocal platforms. Second, established players like Swiggy are making sharper choices to focus on core businesses and avoid conflicts, even when it means exiting high-potential bets.
For Rapido, the backing of deep-pocketed investors provides the resources needed to capture a bigger share of India’s mobility and delivery market. For Swiggy, the exit ensures it can channel funds into strengthening its leadership position in food, grocery, and quick commerce.
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