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Swiggy sells stake in Rapido for Rs 2,400 crore

Rapido has emerged as a strong challenger to Ola and Uber in India, steadily gaining market share on the back of its dominance in the two-wheeler (bike) taxi segment

Food delivery major Swiggy on Tuesday said its board has cleared the sale of its stake in bike taxi aggregator Rapido, operated by Roppen Transportation Services, for a combined consideration of nearly Rs 2,400 crore.

In a regulatory filing, the company, which also operates the quick-commerce platform Instamart, said its board of directors approved the sale of 10 equity shares and 1,63,990 Series D Compulsorily Convertible Preference Shares (CCPS) in Rapido to MIH Investments One BV, a Netherlands-based firm. The transaction, valued at Rs 1,968 crore, has been described as a strategic step aimed at unlocking value for Swiggy and its shareholders. Both the purchaser and MIH India Food Holdings BV (MIFH) are part of the Prosus group and fall under common ownership. Swiggy emphasized that the share purchase agreement has been carried out on an “arm’s length” basis.

In a separate filing, Swiggy said its board has also approved selling 35,958 Series D CCPS in Rapido to Setu AIF Trust, a fund managed under SEBI’s Alternative Investment Funds regulations (Westbridge), for a consideration of Rs 431.49 crore. This deal, unlike the earlier one, does not involve a related party transaction.

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Rapido has emerged as a strong challenger to Ola and Uber in India, steadily gaining market share on the back of its dominance in the two-wheeler (bike) taxi segment.

Alongside the Rapido stake sales, Swiggy also announced an internal restructuring move. The company’s board has cleared the transfer of its Instamart business — including all assets and liabilities — to Swiggy Instamart Private Limited, a newly incorporated indirect step-down wholly-owned subsidiary in India. The transfer will be executed as a slump sale, contingent on shareholder approval.

According to Swiggy, this restructuring is designed to create a sharper focus on its fast-growing quick-commerce vertical. By housing Instamart under a separate entity, the company expects to build a more efficient, strategically aligned corporate structure. Swiggy said this move will support long-term growth, improve performance, and provide greater flexibility in allocating resources to the Instamart business.

With these moves, Swiggy appears to be taking a two-fold approach: monetizing past investments in Rapido while simultaneously restructuring Instamart to drive future growth. Both steps, the company noted, are intended to enhance value creation for stakeholders and strengthen its competitive edge in India’s fast-evolving delivery and quick-commerce markets