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In a strategic move to bolster its financial position, food and grocery delivery major Swiggy has announced the sale of its entire 12% stake in Rapido for ₹2,399 crore to existing investors Prosus and Westbridge Capital.
According to filings submitted to the exchanges on September 23, the transaction is a fully secondary share sale, meaning no new shares were issued by Rapido as part of this deal. Swiggy’s decision to divest comes amid a potential conflict of interest, as Rapido expands into the food delivery segment, directly competing with Swiggy’s core business.
As part of the transaction, Prosus acquired the majority of Swiggy’s stake, purchasing shares worth ₹1,968 crore (approximately $223 million), while Westbridge Capital picked up the remaining shares for ₹431.5 crore (approximately $49 million).
Swiggy’s exit coincides with Rapido’s plans to raise a fresh primary funding round, which sources say will be at a valuation of $2.7–3 billion, a significant jump from its earlier $1.1 billion valuation. The upcoming primary round is expected to inject new capital into Rapido to support its multi-category growth strategy.
This transaction marks a significant capital infusion for Swiggy, which has been navigating a fiercely competitive delivery landscape. As of Q1 FY26, Swiggy held ₹5,354 crore in cash and cash equivalents. The additional ₹2,399 crore from the Rapido stake sale will significantly enhance its liquidity, offering greater flexibility in operational spending, strategic investments, and customer acquisition.
“This sale strengthens our balance sheet as we sharpen our focus on core offerings and evaluate future growth areas,” a senior Swiggy executive said, on condition of anonymity.
Swiggy’s decision to exit Rapido is also seen as part of a broader effort to streamline its portfolio ahead of its anticipated public listing, expected in the next few quarters. By divesting non-core assets and reinforcing its cash reserves, Swiggy is positioning itself more aggressively against competitors like Zomato, which continues to expand both organically and through acquisitions.
Meanwhile, for Prosus and Westbridge, the increased stake in Rapido underscores their confidence in the company’s growth trajectory across bike taxis, logistics, and now food delivery.
With this move, the Indian startup ecosystem witnesses yet another high-value secondary transaction, signaling growing investor appetite for mobility and last-mile delivery solutions in one of the world’s fastest-growing digital markets.
