Swiggy nets ?2,400 crore by exiting Rapido stake sale to Prosus and WestBridge

Swiggy has announced the sale of its entire 11.8% stake in ride-hailing platform Rapido to Prosus and WestBridge Capital for ?2,399 crore, according to stock exchange filings on September 23.

The exit marks one of the most lucrative startup bets for the food and grocery delivery company, which had invested around ?950–1,020 crore in Rapido back in 2022. The divestment has yielded Swiggy a return of more than 2.4x in just over three years.

Under the deal, Prosus will acquire shares worth ?1,968 crore, while WestBridge Capital will purchase shares worth ?431.5 crore. Both investors are long-term backers of Rapido, which is now finalising a $500–550 million funding round. Of this, about $300 million will come in as fresh capital, led by Prosus, with the rest comprising secondary share sales. Sources indicate that the secondary portion values Rapido at $2.3 billion, while the primary infusion is likely to close at a valuation closer to $2.7 billion.

The timing of Swiggy’s exit is significant. The company ended Q1FY26 with cash and equivalents of ?5,354 crore but burned through nearly ?1,000 crore in the quarter. The infusion from this transaction will strengthen its liquidity, offering more firepower for Instamart, Swiggy’s quick-commerce arm, which continues to trail behind Zomato-owned Blinkit.

For Rapido, the fresh round of funding consolidates its position in the mobility sector while powering the expansion of its food delivery vertical, Ownly. The app, live in Bengaluru, has already partnered with the National Restaurants Association of India (NRAI), representing over 50,000 restaurants. The company also reported over 40% growth in FY25 while narrowing its losses, positioning itself for scale in both ride-hailing and food delivery. With this deal, Swiggy not only shores up cash reserves amid a competitive delivery market but also avoids potential conflicts of interest as Rapido deepens its push into food delivery.

The stake sale, insiders say, gives both companies sharper strategic focus in their respective core growth areas.