By Anirudha Yerunkar

Copyright india

Swiggy the food delivery platform that also operates Instamart announced on Tuesday that its board has approved the sale of its stake in Roppen Transportation Services the parent company of bike taxi aggregator Rapido for nearly Rs 2400 crore.
On July 31 the company had said it was “actively re-evaluating” its investment in Rapido amid concerns of a potential conflict of interest after Rapido expressed plans to foray into the food delivery business.
In a regulatory filing Swiggy said its board cleared the sale of 10 equity shares and 163990 Series D Compulsorily Convertible Preference Shares (CCPS) in Roppen Transportation Services to MIH Investments One BV a Netherlands-based company.
Swiggy To Exit Rapido
It further stated that the Rs 1968 crore agreement is a strategic decision and the transaction will help to realise the investments of the company for the benefit of the company and its shareholders.
The Purchaser and MIH India Food Holdings BV (MIFH) belong to the Prosus group and are under common control. The transaction under the share purchase agreement (SPA) is on an arms length basis Swiggy stated.
In another filing Swiggy informed that its Board has approved the proposal for sale of 35958 Series D Compulsorily Convertible Preference Shares (CCPS) held in Roppen Transportation Services Private Limited (Rapido) to Setu AIF Trust a fund registered under the SEBI (Alternative Investment Funds) Regulations (Westbridge) for a consideration of Rs 431.49 crore. This is not a related party transaction.
Swiggy To Transfer Of Quick Commerce Under ‘Instamart’
Besides Swiggy in a separate filing informed that its Board of Directors have considered and approved the sale and transfer of its quick commerce business under the brand name Instamart along with all relevant assets liabilities etc. of the company to Swiggy Instamart Private Limited an indirect step-down wholly-owned subsidiary incorporated in India as a going concern through a slump sale.
The proposed transfer is aimed at developing a focused efficient and strategically aligned corporate entity for the long-term development and performance of the Instamart business along with enhanced flexibility in deployment of resources Swiggy said.
The revenue of the Instamart undertaking for FY 2024-2025 is Rs 21295.84 million representing 24.21 per cent of the revenue of the Company on a standalone basis.
(With Inputs From PTI)