From Partners To Rivals: Swiggy Bows Out Of Rapido, Sells ₹2,400 Cr Stake To Prosus, Westbridge

Swiggy Shares: Swiggy is taking it by the storm, and not your food delivery!

On September 23, 2025, the food delivery giant declared that it is selling its ₹2,400 crore stake in ride-hailing service Rapido. And the reason why Swiggy is bailing out of a business it had invested in to the tune of $180 million in 2022 has become the hot hotdog to eat: Rapido has just resolved to enter the food delivery market with its own, called Ownly.

Well, they transformed into ride-hailing partner-food delivery frenemy. 

Talk about awkward! Feeling the rivalry rising, Swiggy informed its shareholders in July that it wanted to revisit the relationship, and they now have done so. The board gave a go-ahead to the sale of its stake to two well-known faces, Prosus and Westbridge Capital, that already are members of the investor team of Rapido. It is the typical example of “it’s not you but business,” and Swiggy is leaving behind, having a full wallet and less competition.

Swiggy Shares: Stake Sale To Prosus Ventures

• In its latest exchange filing, Swiggy shared details of its stake sale in Rapido.
• The company plans to sell the following to MIH Investments One B.V., a fund managed by Prosus Ventures (Netherlands-based VC):
  • 10 equity shares of Rapido
  • 1,63,990 compulsorily convertible preference shares (CCPS)
• The total value of the sale is ₹1,968 crore.

“The Board of Directors of the Company, at their meeting held on September 23, 2025 have approved the proposal for sale of 35,958 Series D Compulsorily Convertible Preference Shares (“CCPS”) held by the Company in Roppen Transportation Services Private Limited (“Rapido”) to Setu AIF Trust, a fund registered under the Securities and Exchange Board of India,” Swiggy said in a separate exchange filing.

Rapido Shareholding Structure

• Both Prosus and Westbridge are existing shareholders of Rapido.
• As of June 2025 (according to Mint, citing Tracxn data):
  • Prosus holds about 2.7% of Rapido.
  • Nexus owns 9.9%.
  • Westbridge holds 19%.
• Rapido founders hold the following stakes:
  • Pavan Guntupalli: 4.8%.
  • Aravind Sanka: 4.8%.
  • Co-founder Rishikesh S.R.: 1.8%.

Swiggy’s Financials

Swiggy became the second publicly listed food delivery company in India to successfully raise ₹4,359 crore in November 2024. The company had robust cash reserves of ₹8,183 crore as of December 2024, though they reduced to ₹5,354 crore at the end of the June quarter.

Swiggy realized a consolidated net loss amounting to ₹1,197 crore in the first quarter of fiscal year 2025 (Q1FY25), nearly twice the net loss of ₹611 crore in the first quarter of the preceding year. The company, however, showed good top-line development, with consolidated revenue sharply increasing to ₹4,961 crore compared to ₹3,222 crore year-on-year, by which the expanding market presence can be seen in spite of the increased losses.

(With Inputs)

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